Bitcoin has experienced a sharp decline, plummeting to a new six-week low of just over $85,000 in recent hours. This downward trend has not only affected Bitcoin but has also led to significant drops in the altcoin market, resulting in an alarming increase in liquidations.
According to data from CoinGlass, more than $650 million worth of leveraged positions were liquidated, with approximately half occurring in the last hour alone. The total number of affected trades has surged past 190,000, indicating the extent of the market”s turmoil. The largest single liquidation was reported on Hyperliquid, where a position worth over $31 million was wiped out.
The primary catalyst for this latest downturn appears to be escalating fears regarding potential military action against Iran by the United States. Earlier reports indicated that the President of the United States has deployed the Abraham Lincoln Carrier Strike Group to the Middle East, emphasizing that time is running out for Iran to negotiate.
As a result of these geopolitical tensions, crude oil prices surged, with US crude jumping over 2.5%. The global benchmark, Brent crude, approached $70 after a 2.3% increase. Conversely, the precious metals market faced significant pressure, with gold dropping from its recent all-time high above $5,500 per ounce to $5,300 in a matter of minutes.
Currently, Bitcoin is down by 3% on an hourly basis, and many altcoins have seen even steeper declines. Ethereum has retreated to $2,800 after failing to maintain its position above $3,000, while XRP has decreased by 3.5%, and SOL has fallen by 3.7%.
This situation underscores the volatile nature of the cryptocurrency market, particularly when external factors like geopolitical events come into play. Traders and investors are advised to remain cautious as the market adjusts to these developments.
