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As tensions escalate between Iran and Israel, the cryptocurrency market has incurred losses exceeding $430 billion in market capitalization. Due to panic selling, the global cryptocurrency market cap plummeted from a high of $26.4 trillion to a low of $22.1 trillion, marking a 20% increase.
Concerns arise over the situation between Iran and Israel. Iran claims responsibility for an airstrike on its consulate in Damascus, Syria, resulting in the deaths of officials, including senior commanders, and subsequently threatens Israel with its first-ever drone attack. Israel has neither confirmed nor denied involvement in the airstrike.
The cryptocurrency market's poor performance has sparked negative sentiment, but some remain calm due to similar adjustments preceding past halving events, akin to Bitcoin's. The BTC price further dipped to a low of $60,660 before rebounding to a resistance level of $64,300 within hours. BTC is currently trading at $64,000.
According to Rekt Capital, the current Bitcoin cycle has accelerated compared to previous ones, with hitting an all-time high before the halving being a clear indication. Retracement and consolidation within the re-accumulation range are seen as necessary for slowing down and elongating the cycle, bringing it closer to resynchronizing with historical cycles.
ETH price further declined by 9%, falling below $3,000. This led to significant declines in altcoins like SOL, XRP, ADA, DOGE, SHIB, and others, ranging from 20% to 50%.
With ETHBTC plummeting to the 2021 level of 0.46, analyst Benjamin Cowen predicts ETH/BTC may bottom out this summer. In the previous cycle, ETHBTC bottomed out after breaking support and halving for the first time, experiencing "two months of consecutive decline before bottoming out."
As whales consider buying opportunities on dips, significant risks emerge in the DeFi market. With CRV falling to $0.42, Curve founder Michael Egorov's loan position faces liquidation. Michael pledged 371 million CRV (worth approximately $156 million) borrowed against $92.54 million in stablecoins across five addresses on six lending platforms. The health ratio has dropped to around 1.1, facing liquidation risks.
According to CoinGlass data, over $20 billion was liquidated in this intense panic selling, with long positions being closed out nearly $1.5 billion since Friday and short positions nearly $500 million. On Saturday, the cryptocurrency market witnessed $950 billion in liquidations.
Over 252,000 traders have been liquidated, with the largest single liquidation order occurring on the cryptocurrency exchange Binance, where someone sold $8.46 million worth of BTC.
CoinGape extensively covered the cryptocurrency market's collapse, delving into the causes of the crash, other factors at play in the correction, and expert predictions on how low Bitcoin could drop before beginning its rebound. Traders and investors must remain cautious pending the release of the latest data on the US Dollar Index (DXY) and US 10-year Treasury yields. |
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Post time 20-4-2024 11:21:15