QCP Capital Warned: Iran-Israel Conflict Hit Crypto, Investors Rushed for Protection!
The death of Iranian Revolutionary Guard Corps (IRGC) commander Hossein Salami in Israel's airstrike on Iran created a shock effect in global markets, leading to billions of dollars in liquidations in the crypto market.
According to the latest report prepared by crypto analysis firm QCP Capital, fear dominated global markets following Israel's preemptive attack on Iran's nuclear infrastructure and the death of senior IRGC commander Hossein Salami in the attack. Iran's retaliation statements and the U.S.'s distant stance directed investors towards risk aversion. During this process, oil prices saw increases of up to 11%, while safe-haven assets like gold rapidly gained value.
The crisis had a severe impact on the crypto market as well. Bitcoin (BTC) experienced a decline of about 3%, while Ethereum (ETH) lost approximately 9% of its value. In this environment, investors turned to put options that provided downward protection in the options market to safeguard against risks, leading to significant increases in put option premiums.
The report stated that due to the prevailing panic atmosphere, a total liquidation of over 1 billion dollars occurred in futures positions within the crypto market. Despite these liquidations, Bitcoin's relatively resilient performance indicated that institutional investors' interest in the sector remained intact.
QCP Capital noted that the main factor that will determine market movements in the near term will be the success of Iran's retaliation or diplomatic initiatives, urging investors to remain cautious.
