Middle East Conflict Devastates Crypto Market: BTC Plummets 5% with 250,000 Liquidations totaling $1.16 Billion
Escalating Conflict Triggers Panic Selling
On the morning of the 13th, Israel launched Operation 'Lion's Strength', conducting airstrikes on Iranian nuclear facilities and military targets, resulting in the deaths of senior leaders including the commander of the Revolutionary Guard, Salami. Iran immediately retaliated by firing over 100 missiles, closing the airspace between the two parties and causing global risk aversion to surge. The crypto market is the first to feel the impact:
BTC Plummets: Dropping over 1.5% within 15 minutes, hitting a low of $102,800, a daily decline of 4%;
Widespread Liquidation: 250,000 people were forcibly liquidated, amounting to $1.16 billion, with long positions accounting for 92%;
Divergence in Safe-Haven Assets: Gold rose 1.23% to $3,430, while crude oil surged 9%, highlighting the high volatility risk in the crypto market
Three Main Reasons for the Plunge
Leveraged Liquidation Chain: Before the plunge, BTC's open contracts surged by 18%, with 25x leveraged long positions triggering a chain liquidation in panic
Capital Withdrawal from the Middle East: Iranian citizens urgently cashed out through stablecoins, with local exchange USDT premiums reaching 20%, intensifying selling pressure
Disproving Safe-Haven Narrative: The BTC Volatility Index (BVOL) soared to 70, far exceeding gold, exposing its high-risk nature
Survival Strategy: Stop Loss + Hedge + Reallocation
Strictly Maintain Stop Loss Line: BTC's key support at $101,000, if breached, one should exit (historical backtesting shows it may drop to $90,000 after breaking)
Cross-Market Hedging: Short BTC/Long Gold ETF (GLD), this strategy yielded an annualized return of 45% during geopolitical crises
Switch to Stable Returns: Transition to Binance SUSD staking pool (8% annualized), or stake BNB to share in 5 million LAYER airdrop
Introducing 'War Insurance': Binance Launches
If BTC drops below $95,000 within 7 days after insuring, the maximum compensation is 90% (premium rate 4.5%). When war reaches the crypto sphere, tools are the only armor
Core Data Overview
Metric Value Impact BTC Daily Decline of 4% Hits Nearly Two-Month Low Long Position Liquidation Ratio of 92% Leveraged Longs Suffer Heavy Losses Gold Increase of 1.23% Traditional Safe-Haven Assets Crush Cryptocurrencies Crude Oil Increase of 9% Hormuz Blockade Risk Drives Oil Prices Up
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