Crypto Markets Crash as Iranian Drone Attack on Israel Sparks Sell-Off
The cryptocurrency market experienced a significant downturn following an Iranian drone attack on Israel, leading to a widespread sell-off of digital assets.
Bitcoin , the largest cryptocurrency, saw a 7.7% decline on Saturday, marking its most substantial retreat since March 2023.
Although the token managed to recover some losses and was trading around $64,000 on Sunday, other major coins like Ether, Solana, and Dogecoin also suffered 24-hour losses.
The attack by Iran, which involved drones and missiles, was seen as a retaliation for a strike in Syria that resulted in the deaths of top Iranian military officials.
This escalation of conflict in the region created an atmosphere of uncertainty, which impacted traditional markets on Friday and spilled over into the cryptocurrency market during the weekend.
Cryptocurrencies trade continuously, providing investors with insights into market sentiment before traditional markets reopen on Monday.
However, it should be noted that conditions can change rapidly during this period.
The tension between Iran and Israel had negative repercussions on stocks and prompted investors to seek safety in assets such as bonds and the US dollar.
Coinglass data revealed that approximately $1.5 billion worth of bullish crypto wagers using derivatives were liquidated over the course of Friday and Saturday, making it one of the largest two-day liquidations in at least six months.
The high level of leverage in the market contributed to the significant price deterioration of digital assets during this period.
Bitcoin’s current price is approximately $10,000 lower than its mid-March record of $73,798.
The launch of dedicated US exchange-traded funds (ETFs) earlier this year had
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