The ongoing conflict between Israel and Iran has significantly impacted the crypto market, triggering a wave of liquidations and price drops. Here's an update on the situation:
*Conflict Escalation*
Israel launched a preemptive strike against Iran, targeting military sites and facilities allegedly tied to Iran's nuclear program. This move has heightened fears of a broader conflict in the Middle East, with Iranian officials warning of further attacks if Israel retaliates .
*Crypto Market Impact*
The escalation of tensions led to:
- *Bitcoin's Decline*: BTC fell 4% to around $104,000, with a 24-hour low of $102,822 and a high of $108,439.
- *Ethereum's Drop*: ETH plummeted 9.6% to $2,493, with other altcoins like Solana, XRP, and BNB also experiencing significant losses.
- *Liquidations*: Over $1.1 billion in crypto liquidations were recorded, with $930 million in long positions liquidated within 12 hours. Bitcoin saw almost $445 million in liquidations, while Ethereum experienced $288.40 million ² ³ ⁴.
*Market Sentiment*
The conflict has triggered a risk-off sentiment, with investors seeking safe-haven assets like gold. The price of gold surged to $3,410 per ounce, while crude oil prices jumped 13% to $77 per barrel. Analysts warn that prolonged conflict could inject further volatility into markets already grappling with inflation concerns and interest rate uncertainty .
