InvestorCrypto.net - After Iran's drone attack on Israel on April 13, the crypto market reacted with Bitcoin (BTC) dropping over 8% from its value to trade at $61,514.
The recent correction marks a continuation of the trend that began on April 12 and worsened the next day. Analysts estimate that the crypto market liquidated assets worth over $860 million over two days, with the price of Bitcoin initially dropping from $71,000 to $65,000 and then further falling to $61,000.
Market observers attribute the initial drop to news from the US Federal Reserve, which hinted at no rush to lower interest rates.
This stance is driven by high inflation levels causing domestic concerns and impacting global policy adjustment expectations.
The second drop was due to escalating tensions between Iran and Israel, with crypto traders being the first to react to the news as traditional financial markets were closed over the weekend. As of the latest check, Bitcoin was trading at $64,123, still 5% lower than 24 hours ago.
It has experienced losses of 7.5% and 8.6% over seven and 14 days, respectively, with a slight decrease of just over 6% over 30 days.
The world's largest cryptocurrency by market capitalization has also dropped 13% from its all-time high of $73,798 in March, but it remains more than double compared to last year.
Experts from QCP state that Iran's attack on Israel has caused fear in the market. Ethereum (ETH) fell to $2,850, with other cryptocurrencies averaging a 20-30% decline. Among the top 100 cryptocurrencies by market capitalization, only Leo (LEO), Bittensor (TAO), Celestia (TIA), and Wormhole (W) have gained in the last 24 hours, according to CoinGecko.
Crypto data aggregators also indicate that the total market capitalization of this sector dropped by 5.2% to $2.43 trillion after April 13.
Despite these statistics, some analysts argue that such downturns are normal. Into The Cryptoverse founder Benjamin Cowan notes that the crypto market has experienced similar dips before. Meanwhile, MicroStrategy CEO Michael Saylor reaffirms his famous statement that chaos is beneficial for Bitcoin.
Overall, the recent events in the crypto market demonstrate the volatility and sensitivity to external factors such as geopolitical tensions and economic policies.
It is essential for investors and traders to monitor these developments closely and make informed decisions based on thorough analysis. With fluctuations being inherent to the nature of cryptocurrencies, it is important to remain vigilant and adapt strategies accordingly.
In conclusion, while the recent decline in prices may be disconcerting for some, it is part of the evolving landscape of digital assets.
Understanding the underlying factors driving market movements is crucial for navigating the volatile waters of the crypto space.
By staying informed and leveraging expert insights, participants can better position themselves to weather the storm and potentially benefit from the long-term growth prospects of this innovative financial ecosystem.
0 Comments