Recent events in the Middle East have impacted the global cryptocurrency market, causing significant price fluctuations.
Escalation of Middle Eastern Conflicts
Cryptocurrency markets experienced a flash sell-off after Israel targeted Iranian assets. The Block reports that Israeli military actions are directed against Iranian nuclear and military infrastructure. The escalation of conflict traditionally negatively affects risky assets, including cryptocurrencies.
Significant Drop in Cryptocurrency Prices
Bitcoin fell over 4%, dropping below the $104,000 level, but later recovered to $104,400. Ethereum also suffered a significant decline of 10%, reaching $2,500. Other popular altcoins like XRP, Solana, Dogecoin, and Avalanche showed significant losses ranging from 6% to 15%.
Financial Consequences and Trader Liquidations
The market situation is exacerbated by the near disappearance of the possibility of a Federal Reserve rate cut due to disappointing inflation data. According to Coinglass, $1.14 billion worth of leveraged trades were liquidated in the last 24 hours, with the highest number of liquidations occurring in the BTC/USDT pair on Binance.
The escalation of conflicts in the region and changes in financial policy have caused a significant drop in cryptocurrency prices. Investors should pay close attention to the current market situation.
