Several factors are converging to put downward pressure on the market:
1. Geopolitical Turmoil: Israel‑Iran Conflict
Israel conducted airstrikes on Iran, significantly escalating Middle East tensions. This sparked a risk-off reaction in financial markets, with investors selling off crypto assets—Bitcoin dropped nearly 5% intraday, and Ethereum by about 10% .
Other risk assets like U.S. stocks slid (futures down ~1.5–1.8%), while safe-haven assets (gold, oil) surged .
2. Macro & Regulatory Pressures
The Fed’s inflation data deepened concern that no interest rate cut will be announced soon, denting risk appetite .
U.S.–China trade tensions and potential new tariffs have increased global uncertainty, pressuring markets further .
3. Options Expiry & Leveraged Liquidations
Over $3.7 billion in BTC/ETH options expired today. Such expiries often trigger volatility and position adjustments .
> “Crypto liquidations crossed over $1.2 billion in the last 24 hours” — with long positions being mainly hit .
4. Technical Pullback / Profit-Taking
Bitcoin hit resistance near $111K on the upper Bollinger Band and is now cooling off .
Indicators like MACD and RSI show a potential short-term correction, suggesting consolidation may continue .
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Summary
Factor Impact
Geopolitical risk Major sell-off in risk assets
Fed & macro dynamics Reduced appetite for speculative assets
Options expiry Spike in volatility & liquidations
Technical pullback Consolidation after recent highs
