At $BTC , a cannon sounded in the Middle East, and the cryptocurrency market collapsed in an instant!
Early this morning, Israel suddenly launched an airstrike on Iranian nuclear facilities, causing global risk-averse sentiment to explode. Bitcoin plummeted by $2,000 in 15 minutes, and Ethereum broke below the $2,500 mark. Over the course of 24 hours, more than $1 billion was liquidated across the network — the most severe case was a user on Binance who lost $200 million in a single trade, making this a ‘collective funeral for leveraged players’.
Why does war affect the cryptocurrency market?
Geopolitical conflicts are like dropping a bomb on the market, with funds frantically fleeing towards gold and oil (gold prices soared to $3,430, oil prices surged by 6%). And what about the crypto market? It should have been the 'digital gold’, but instead, it plummeted alongside U.S. stocks. In simple terms, large funds now only recognize 'real safe havens' and do not believe that altcoins can withstand risks. Moreover, with the market previously fully leveraged (BTC open interest increased by 18% in a week), market manipulators took advantage of the news to crash prices and reap profits, leaving retail investors with no chance to escape.
What’s the way forward? Here’s a three-sentence summary:
Optimistic scenario: If the U.S. and Iran reach an agreement over the weekend, BTC may touch $108,000, but don’t expect a V-shaped recovery; Neutral scenario: Both sides fire a few missiles but do not escalate the conflict, BTC will bottom out around $105,000; Pessimistic scenario: Iran blocks the Strait of Hormuz, causing BTC to drop below $90,000, and those looking to buy the dip should prepare bags to catch the blood tokens.
Response:
In the short term, avoid high leverage! Keep some bullets ready for stabilization signals (for example, if USDT trading volume surges by 15%, it indicates that off-market funds are waiting for opportunities). Looking long term, blockchain cross-border payments are expected to grow by 47% this year, and El Salvador is still frantically accumulating coins; a market crash could instead be a long-term investment opportunity.
