- Bitcoin slips after Israeli airstrike kills top Iranian military commander.
- Over $1 billion liquidated as crypto traders rush to exit.
- Bearish bets on Bitcoin rise ahead of Fed meeting decision.
Bitcoin fell nearly 2% as tensions spiked in the Middle East following an Israeli airstrike on Iran. The attack reportedly killed IRGC commander Hossein Salami and targeted multiple nuclear and military sites. In response, global markets reacted sharply. Oil prices also rocketed as much as 11% down, although the largest cryptocurrencies, including Ethereum, Solana, and XRP, experienced even more substantial declines. According to CoinMarketCap, Ethereum declined by about 8%, Solana dipped by 10%, and XRP by 5%.
Bitcoin Derivatives Turn Bearish Ahead of Federal Reserve Decision
After the attack, traders panicked to save their investments. CoinGlass reveals that more than 215,000 traders have been liquidated during the last 24 hours. The liquidation volume was a total of $1.019 billion, of which long positions composed $945 million. The biggest single liquidation occurred on Binance on the trading pair BTC/USDT and was worth $201 million. These losses show the impact of the sudden geopolitical events that can cause a quick loss, particularly the leveraged positions in the crypto environment.
Investors in the traditional markets also evinced fear. Fear of the conflict disrupting global energy supplies sent oil prices surging by up to 11%. With Iran being a significant player in oil exports, further escalation may strain the worldwide supply chains. Gold prices were also up as investors fled to safer investments. In the meantime, S&P 500 futures declined by breaking the psychologically important 6,000 level, which showed that equity traders also responded to geopolitical risks.
Meanwhile, a sudden change was recorded in the crypto derivatives market. Traders began to purchase short-term downside defense in the shape of Bitcoin put options. These options were in demand, which caused their prices to be much higher than call options, an indication of the strong bearish feeling. Such a sharp reversal indicates that traders have increased their expectations of downside risks in the short run. The volatility rates soared, particularly before the U.S. Federal Reserve meeting next week, which could influence the market trend further.
Bitcoin Faces Pressure as Geopolitical Uncertainty Grips Markets
Despite the panic, confidence is still being displayed by some institutional investors. DeFi Development Corp. expressed an equity facility of $5 billion to purchase Solana (SOL) to add to its treasury. This is an indication that there are still companies that find long-term utility in significant crypto assets, even amid uncertainty. Nonetheless, the general mood is one of caution, and most investors are holding back to observe how Iran would react to the Israeli airstrikes.
In prospect, a lot depends on the next step of Tehran. In the event of a retaliatory attack by Iran, the crypto market and other risk assets could be in store for another bout of steep falls. Conversely, should diplomatic negotiations commence, markets may stabilize. In the meantime, the crypto and traditional markets are still very sensitive to the Middle East news. Any new development might attract abrupt price changes.
To conclude, the Israeli military operation against Iran has had a significant effect on the international financial markets. Bitcoin and other cryptocurrencies are under pressure as there is more than $1 billion in liquidations, and the chances of conflict are growing. The next few days will be important, with traders awaiting geopolitical news and central bank announcements.
The post Bitcoin Dips as Israel Strikes Iran, Over $1B Liquidated in Crypto Market appeared first on Live Bitcoin News.
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