The cryptocurrency market has faced significant pressure over the past week, leading to a loss of nearly $240 billion. The primary causes of this decline are linked to rising geopolitical risks and sell-offs by large investors.
Israel-Iran Conflict
One of the main reasons for the decline has been the worsening conflict between Israel and Iran. Investors are concerned about potential U.S. involvement, as former President Trump issued a warning to Iran regarding agreement violations.
Whale Sell-Offs in the Market
Large holders of cryptocurrencies (whales) have begun to sell off substantial amounts of Bitcoin. According to Glassnode data, wallets that held BTC for 6 to 12 months recently sold over $900 million worth. Even long-term holders have started to cash in profits.
Liquidation of Trader Positions
As prices fell, many traders using leverage faced losses. In the past 24 hours alone, over $503 million in crypto positions were liquidated, impacting 134,000 traders. Most losses occurred in Ethereum, with $183 million in liquidations.
In light of geopolitical instability and sell-offs by large investors, the cryptocurrency market is under significant pressure. This highlights the importance of closely monitoring market conditions and external political factors.
