The cryptocurrency market experienced a brief sell-off over the weekend, with Ethereum's decline reaching 7.7% at one point on Sunday morning, and Bitcoin temporarily dropping below $0.101 million. This round of decline coincided with the U.S. airstrikes on Iranian nuclear facilities and escalating geopolitical tensions, leading to increased risk-averse sentiment among investors.
Market panic led to large-scale liquidations, with approximately $0.679 billion in cryptocurrency positions forcibly closed within 24 hours, affecting over 171,000 traders. The largest single loss came from a $9.15 million long position in ETH at the HTX Exchange.
However, after a brief decline, both Bitcoin and Ethereum rebounded, recovering their losses.
According to CCTV news, the U.S. has completed attacks on three Iranian nuclear facilities: Fordow, Natanz, and Isfahan.
Ethereum hits a setback, briefly dropping to a five-month low.
Ethereum (ETH) performed the weakest in this round of sell-off, with the price dropping to around $2200, marking the lowest intraday level since May 9 last year. Data shows that Ethereum's decline during the Asian session's early trading reached 7.7%, which then narrowed down; it is currently trading around $2263. Currently, Ethereum's decline has continued to narrow to about 0.5%, reported at $2285.
Caroline Mauron, co-founder of liquidity provider Orbit Markets, stated that the market is closely watching ongoing geopolitical developments. She pointed out that during the weekend, key observation points for Bitcoin will be $0.1 million and for Ethereum, $2000, while oil prices will become a particular focus when traditional markets reopen.
Bitcoin is relatively resilient.
Compared to the significant decline of Ethereum, Bitcoin's performance is relatively stable. Although it briefly dropped below $0.101 million, it was nearly flat at 1:10 PM Singapore time and is currently trading above $0.102 million.
Currently, Bitcoin's price is slowly recovering, increasing by about 0.6%.
Cosmo Jiang, a partner at Pantera Capital Management, stated that worries about whether the U.S. will strike Iran led to sell-offs throughout this week until the weekend. With airstrikes confirmed and the situation seeming closer to resolution, prices appear to have at least found a local bottom.
Market analysis shows that Bitcoin's price is currently compressing within a Range of $101,500 to $104,000, forming a potential 'liquidity sweep' pattern according to many Analysts. Analyst Altcoin Sherpa suggested that the price might drop below $0.101 million to trigger stop-loss orders before rebounding.
The market's liquidation scale has reached new heights as risk-averse sentiment increases.
Market volatility caused by geopolitical tensions has led to large-scale liquidation events. According to Coinglass data, approximately $0.679 billion in Cryptos bets were liquidated in the past 24 hours, with about $0.554 billion and $67 million coming from the closure of long and short positions respectively.
The liquidation events further exacerbated market uncertainty and volatility. Over 0.171 million Traders experienced liquidations in a single day, indicating the high risk of leveraged trading in the current market environment.
AI Concept tokens fell alongside, with some tokens declining over 10%, reflecting investors' shift towards relatively safe Assets.
