Global Crypto Market Plunges $430 Billion Amid Iran-Israel Tensions: What Happened and What’s Next?
The global crypto market has taken a massive hit, losing over $430 billion in market value as tensions between Iran and Israel escalate. The market cap dropped by 20% from $2.64 trillion to a low of $2.21 trillion, sparking panic selling and eroding confidence in the market.
The conflict between Iran and Israel has intensified, with Iran threatening retaliation for an airstrike on the Iranian consulate in Damascus, Syria. Initial drone attacks on Israel have been reported, but Israel has neither confirmed nor denied its involvement in the attack.
The crypto market had a rough week, with negative sentiment prevailing. However, some remain calm, attributing the downturn to an expected correction before the Bitcoin halving event. Despite falling to a low of $60,660, Bitcoin rebounded to the $64,300 resistance level and is currently trading at $64K.
Analysts like Rekt Capital believe that the current Bitcoin cycle has been accelerated compared to previous ones. They suggest that the current retrace and consolidation phase is necessary to slow down the cycle and align it with historical patterns.
ETH price also dropped significantly, dragging the price below $3,000 and causing a ripple effect on altcoins like SOL, XRP, ADA, DOGE, and SHIB, which experienced losses of 20-50%.
Meanwhile, a major risk has emerged in the DeFi market as Curve founder Michael Egorov faces potential liquidation of his lending positions. More than $2 billion in liquidations have occurred across the market, with significant long and short positions being liquidated.
As traders and investors navigate this volatile market, experts are closely watching the US dollar index (DXY) and US 10-year treasury yield for further guidance. The opening of CME Bitcoin futures contracts today at 5 PM CT will also provide insight into the market direction.
The crypto market crash has sent shockwaves through the industry, prompting traders to exercise caution and stay informed about the latest developments.
