The ongoing conflict between Israel and Iran has significantly impacted the crypto market, with Bitcoin (BTC) and Ethereum (ETH) experiencing substantial drops. Here's a breakdown of the situation:
Market Impact
$1.15 billion liquidated: The crypto market saw massive liquidations, with over $1 billion wiped out in just 24 hours.
BTC price drop: Bitcoin fell by 4% to around $104,760, with a significant decline to $102,822 at one point.
ETH price drop: Ethereum dropped below $2,500, with an 8% decline to $2,530.
Altcoin losses: Other major altcoins like Solana, Dogecoin, and XRP saw large declines of 8.5%, 7.3%, and 5%, respectively.
Reasons Behind the Decline
Risk-off sentiment: Geopolitical tensions triggered a wave of risk-off sentiment, causing investors to sell off riskier assets like cryptocurrencies.
Market volatility: The conflict led to increased market volatility, resulting in significant price swings.
Expert Opinions
Short-term uncertainty: Crypto expert Dom Kwok believes that geopolitical conflicts cause near-term uncertainty, but the fundamentals of crypto remain strong in the long run.
Buying opportunities: Some analysts view market dips caused by geopolitical conflicts as great buying opportunities.
Potential rebound: History has proven that markets frequently rebound from geopolitical shocks.
Key Levels to Watch
$100K support: Bitcoin's $100K level is considered strong support due to high liquidity.
$2,500 support: Ethereum's support level is around $2,500, with potential further declines if broken. $BTC $ETH $SOL
