The crypto market lost more than $1 billion due to the decline of bitcoin below $100,000, triggered by geopolitical instability and panic selling.
In the last 24 hours, the cryptocurrency market experienced a massive liquidation of positions totaling $1.01 billion, caused by the sharp drop in the price of bitcoin below the $100,000 mark. This was a result of geopolitical upheavals, including news of escalating conflict between the US and Iran, which provoked panic selling among investors. According to analysts, the majority of liquidations were in long positions, indicating excessive optimism among traders who did not expect such a rapid collapse.
The price of bitcoin, which previously reached nearly $112,000, has fallen by 4%, marking the largest single-day decline in recent weeks. Major altcoins were also affected: Ethereum dropped below $2,500, and Solana lost key support levels. Experts note that the market became vulnerable due to a high level of leverage, especially on large exchanges such as Binance and Bybit, where up to 39% and 32% of the total volume were liquidated, respectively. The current support for bitcoin is in the range of $96,000 to $97,000, and breaching this level could strengthen the downward trend.
Despite a short-term recovery of bitcoin to $101,536, market sentiment remains bearish. Predictions on platforms like Myriad show that 65% of users expect further declines below $95,000. Analysts advise traders to exercise caution, considering the ongoing geopolitical instability and potential macroeconomic risks. This crash highlights how sensitive the crypto market remains to external shocks, especially in conditions of high volatility and leverage.