Recent events in the Middle East have negatively impacted the cryptocurrency market, causing mass liquidations and a decline in capitalization.
Wave of Liquidations in the Crypto Market
In the past 24 hours, $657.99 million worth of positions were liquidated, primarily due to a sudden market drop. This includes $505.28 million related to the liquidation of long positions of investors expecting price increases. The most significant liquidation was recorded in the BTC/USDT trading pair on the HTX exchange, amounting to $35.45 million.
Decline in Market Capitalization and Technical Outlook
The total cryptocurrency market capitalization fell to $3.04 trillion but has slightly rebounded to $3.09 trillion. The Relative Strength Index (RSI) stands at 38.41, suggesting potential for a short-term recovery, while the market remains below the 20-day moving average of $3.23 trillion.
Outlook for Altcoins
Despite the overall negative trend, some altcoins, such as Story IP, Four, and Sonic, have attracted attention, showing gains of 11.35%, 10.39%, and 7.68%, respectively.
The escalation of the political situation in the Middle East has had a significant impact on the cryptocurrency market, causing mass liquidations and a decline in capitalization. While Bitcoin and Ethereum face challenges, some altcoins are demonstrating growth, highlighting the instability of the current situation.
