📉 Reaction of Bitcoin and the crypto market
0-1Price drop: BTC fell about 2.7% in the last 24 hours, reaching US$ 104,763, with intraday lows around US$ 103,274 . 442-0At times, losses reached 5%, with the value retreating below US$ 103,000 .
563-0Other cryptocurrencies also melted down: Ethereum retreated about 7.6–10%, Solana nearly 9–11%, and XRP fell 5–6% .
712-0Massive liquidations: Over US$ 1.1 billion in leveraged positions were liquidated in cryptocurrencies, with about US$ 448 million just in BTC .
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⚖️ Comparison with other safe assets
896-0Dollar, yen, franc, and gold appreciated. The dollar rose about 0.4% against a basket of currencies, gold advanced up to 1.3%, and Treasury yields fell .
1148-0This highlights that, in times of global tension, investors prefer traditional lower-risk assets over crypto, suggesting that Bitcoin still does not fully fulfill the role of “digital gold.” This narrative has already been questioned .
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📊 Why does this happen?
1. 1432-0Global risk sentiment: Investors shy away from volatile assets like Bitcoin when news of war arises .
2. 1627-0Inflationary impact: The rise in oil prices (more than +10%) increases inflation fears, reducing appetite for risk assets .
3. 1791-0Correlation with the stock market: Since mid-2023, Bitcoin has often moved in sync with stocks (around 80% correlation), meaning it suffers alongside overall market declines
