#以色列伊朗冲突

Bitcoin plummets, 1 billion liquidated, why is the impact of this war so severe? Is the market becoming more fragile?

Someone asked me: In the past, the Russia-Ukraine and Israel-Palestine wars didn't cause such a stir, why did Bitcoin react so strongly this time when Israel attacked Iran? Is the cryptocurrency market's "resilience" decreasing?

Today, let's discuss the real logic behind this wave of plunges in a simple way, to avoid being swayed by market emotions and to better assess: Is this drop a "short-term panic" or a "structural risk"?

First, let's see what happened?

On June 13, Israel directly struck Iran, and the entire country entered a state of emergency. Once the news broke, the market exploded:

Bitcoin instantly dropped below $102,000, falling over 5% within 24 hours.

Ethereum fared worse, falling below $2,500, with a 9% decline within 24 hours.

The entire network saw $1 billion in liquidations! Of which $937 million were long positions (isn't that scary?)

Doesn't it feel familiar? Didn't wars used to be like this? But this time, the market's reaction is clearly more intense.

So why did this wave of plunges happen?

Here are three core reasons that you can easily understand:

① Geopolitical sensitivity has increased

This conflict is not just fighting while talking, but could escalate into a full-scale war in the Middle East.

This will affect global energy and the U.S. dollar's movement, naturally causing the market to run for safety first.

② Market leverage is too high

Right now, in the cryptocurrency market, both large holders and retail investors are accustomed to leveraging long positions. Once a sudden negative news hits, liquidations can cascade like dominoes, leading to more severe sell-offs.

③ The liquidity environment is not as favorable

The Federal Reserve is still in a "high interest rate + no easing" stance, which is completely different from the 2023 expectation of "rate cuts". In this context, wars do not bring safe-haven buying but rather amplify the market's panic sentiment.

So how will the market trend? Will it continue to drop?

Is it time to buy the dip? Or should we wait for clearer signals? Share your thoughts in the comments, and I will select a few comments to provide detailed strategy responses!

—— Feel free to like, share, and bookmark. The market won't wait for anyone; understanding is the greatest source of profit.