After an Iranian drone strike on Israel, the Bitcoin market saw a sharp decline that resulted in a widespread sell-off of digital assets.
With its 7.7% fall on Saturday, Bitcoin, the biggest cryptocurrency, had its biggest decrease since March 2023.
While the token recovered some of its losses and was trading at roughly $64,000 on Sunday, losses over the course of 24 hours also befell other significant coins including Ether, Solana, and Dogecoin.
Iran Retaliates Against Israel for Syria Strike
Iran launched an attack using drones and missiles that was perceived as a form of vengeance for a strike in Syria that claimed the lives of senior Iranian military leaders.
Due to the increasing violence in the area, there was a sense of unpredictability on Friday that permeated regular markets and extended into the Bitcoin market during the weekend.
Before traditional markets reopen on Monday, investors can gain insight into market sentiment by following the continued trading of cryptocurrencies.
It should be remembered that at this time, things might change quickly.
Stocks suffered as a result of the tension between Iran and Israel, which led investors to seek refuge in US dollars and bonds.
One of the biggest two-day liquidations in at least six months, Coinglass data showed that over the course of Friday and Saturday, around $1.5 billion worth of bullish cryptocurrency wagers employing derivatives were liquidated.
The considerable decline in the price of digital assets during this time was partly caused by the market’s high degree of leverage.
The price of bitcoin is currently around $10,000 less than its record of $73,798 set in mid-March.
The coin reached an all-time high thanks to the introduction of specialized US exchange-traded funds (ETFs) early this year, but subsequent inflows into these products have slowed down.
How Would Markets Be Affected by a Bitcoin Halving?
The next Bitcoin halving, which is anticipated to take place around April 20, is highly anticipated by cryptocurrency traders.
This will cut the amount of fresh Bitcoin supply in half, which has historically contributed to price hikes.
But with Bitcoin having just reached a record high, some are questioning if the halving will have the same effect this time around.
One is that millionaire Arthur Hayes has voiced a cautious opinion about the impending half of Bitcoin and how it may affect the asset’s price.
Hayes thinks that the market activity leading up to and following the halving event might potentially be negative, despite the fact that many analysts predict a big rally for Bitcoin.
Coinbase has also issued a warning, stating that the time of year may provide difficulties for an upward momentum as traders hold out for a price spike before to the halving of Bitcoin.
However, some business leaders, including Brad Garlinghouse, the CEO of Ripple, are still upbeat.
According to Garlinghouse, spot ETFs and the halving of Bitcoin will be the main drivers of this year’s predicted doubling of the entire market value of cryptocurrencies.
He sees a big part of this promising future coming from the infusion of actual institutional capital via ETFs.
“I have a lot of optimism. On April 7, he told CNBC, “I think the macro trends, the big picture things like the ETFs, they’re driving real institutional money for the first time.”
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
