On the morning of March 29, 2023, a cannon sounded in the Middle East, and the cryptocurrency market collapsed instantly! This morning, Israel suddenly airstriked Iran's nuclear facilities, and global risk aversion sentiment exploded. Bitcoin plummeted by $2000 in 15 minutes, Ethereum broke below the $2500 mark, and over $1 billion was liquidated across the network in 24 hours — the most severe was a trader on Binance who lost $200 million in a single transaction, this wave was simply a 'collective cremation ground for leveraged players'.

Why does war impact the cryptocurrency market?

Geopolitical conflicts are like throwing a bomb into the market, causing funds to flee wildly towards gold and oil (gold prices surged to $3430, and oil prices soared by 6%). And what about the cryptocurrency market? It should clearly be 'digital gold', but instead, it plummeted along with US stocks. In plain terms, large funds only recognize 'real risk aversion' now and do not believe that altcoins can withstand risks. Moreover, with market leverage previously at its peak (BTC open contracts rose by 18% in a week), manipulators directly crashed the market to harvest profits, leaving retail investors without even a chance to escape.