#IsraelIranConflict
$1 Billion Liquidated in Crypto Crisis Amid Escalating Tensions Between Iran and Israel
In the early hours of Friday morning, news of an Israeli strike on Iran triggered a wave of sell-offs in the cryptocurrency market. Bitcoin dropped 5% to below $104,000, while altcoins fell between 6% and 9% According to Coinglass, the liquidations led to losses exceeding $1 billion, including long-term investments
Escalating Tensions Shake Global Markets
Market analysts say the strike spurred a flight to safe-haven assets Futures for the S&P 500 index declined by 1.9%, while oil and gold prices surged. West Texas Intermediate (WTI) crude rose more than 12% to $77 per barrel. Gold surpassed $3,400 per ounce as investors sought safety
Arthur Hayes, former CEO of BitMEX, predicted heightened volatility in the crypto market. In a post following the incident, he wrot,“Brace yourselves, bears” He added that proposed tariffs by former U.S. President Donald Trump have further amplified risk. Ethereum dropped 8% to $2,505—considered a critical support level. Other cryptocurrencies saw declines of up to 10% within hours
Reports indicate that gold and oil remained unaffected by the broader market dip Analysts believe oil prices have climbed 30% from their May lows. Those betting on falling inflation or an early interest rate cut may be mistaken. Gold’s rally signals deep concerns about the future. Some expect this spike to subside if tensions ease
The Future of Cryptocurrencies
Short-term forecasts vary. As the news impact fades, some traders expect a rebound from the knee-jerk reaction. Others point to the upcoming U.S. Consumer Price Index (CPI) data later this week as a potential market mover. If inflation figures come in lower than expected, it could either fuel further sell-offs or alleviate some fears
Volatility has returned with force. Markets were already jittery due to rising interest rates and geopolitical conflicts in recent weeks. With renewed focus on the Middle East, sharp fluctuations may persist
