The cryptocurrency market experienced significant fluctuations following US President Donald Trump's announcement of airstrikes on three major nuclear facilities in Iran. Here's a breakdown of the market's reaction and expert analysis:
Market Reaction
Ethereum Price Drop: Ethereum's value plummeted 7.7% to $2,200, recovering some losses throughout the day. It reached its lowest intraday price since May 9.
Bitcoin's Stability: Bitcoin briefly surged to $101,000 before returning to its previous levels, showcasing relative stability amidst the turmoil.
Liquidations: A total of $679 million worth of positions were liquidated in the crypto market over the last 24 hours, with $554 million in long positions and $67 million in short positions.
Expert Insights
Market Concerns: Caroline Moron, co-founder of Orbit Markets, notes that investors are closely monitoring key levels: $100,000 for Bitcoin and $2,000 for Ethereum. Oil prices will also be a focus when traditional markets reopen.
Uncertainty and Resolution: Cosmo Jiang, general partner at Pantera Capital Management, believes uncertainty about potential US attacks on Iran drove selling pressure. However, confirmation of the attacks has led prices to find a local bottom.
Bitcoin's Leadership: Jiang also predicts Bitcoin will likely lead the recovery during times of geopolitical uncertainty.
As the situation continues to unfold, investors and market watchers alike will be keeping a close eye on how these developments impact the cryptocurrency landscape.
