Tensions between Israel and Iran trigger massive sell-off in the cryptocurrency market, with BTC liquidations exceeding 1.10 billion USD
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Background: Israel's attack on Iranian nuclear facilities has triggered geopolitical tensions, causing significant volatility in the cryptocurrency market.
Key Events: Bitcoin (BTC) experienced $1.16 billion in market liquidations over the past 24 hours, with BTC alone losing $500 million and leveraged long positions losing $421 million. Ethereum (ETH) liquidations reached $301 million, with leveraged longs accounting for $245 million. Other major coins such as Sui and Solana also saw notable declines. Despite most coins falling, the DeFi sector performed relatively strongly, with an average increase of 4.5%.
Market Reaction: Ahead of the Federal Reserve's interest rate decision, the market increased hedging against downside risks, showing short-term bearish sentiment. QCP Capital noted a rise in demand for put options, indicating investor caution ahead of the Fed meeting in the coming week. Nonetheless, BTC's liquidity below $100,000 is insufficient, potentially forming short-term support. If BTC rebounds to between $111,000 and $112,000, approximately $6 billion to $8 billion in leveraged short positions could be liquidated.
Potential Impact: Geopolitical tensions combined with Fed policy expectations are jointly influencing market sentiment, and future market volatility will require close attention to related developments. Data provided by SoSoValue supports this market analysis.
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