Bitcoin fell 4.1% below 104,000 USD after airstrikes in Tehran, while gold surged as investors sought safe-haven assets.
The cryptocurrency market experienced a volatile trading session as Bitcoin sharply dropped to a daily low of 103,362 USD on Wednesday, following news of airstrikes in Tehran that shifted investor sentiment towards risk aversion. The largest digital currency by market capitalization lost 4.1% of its value in the most recent trading session, reflecting increased caution among investors amid rising tensions in the Middle East.
BTC/USD price in 1h. Source: Bitstamp
The decline of Bitcoin coincided with a strong shift in investment capital towards traditional safe-haven assets. The price of gold skyrocketed to 3,410 USD/ounce, marking a 0.6% increase within just one hour after the news of the airstrike was announced. The rise of this precious metal was further supported by the weakening of the USD and concerns about the potential escalation of geopolitical conflict.
Derivative contract liquidations surge
Selling pressure has spread throughout the cryptocurrency ecosystem, with the total value of derivatives contracts liquidated in the day reaching up to 920 million USD. Of this, 875 million USD were long positions, indicating that many investors were forced to close long positions due to margin calls as the price of Bitcoin plunged.
