Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Nearly $250 million wiped from the crypto market as Iran attacks Israel

Nearly $250 million wiped from the crypto market as Iran attacks Israel

CryptopolitanCryptopolitan2024/09/30 16:00
By:By Chris Murithi

Share link:In this post: Geopolitical tensions trigger $248M crypto liquidation. Bitcoin’s safe-haven narrative falters in crisis. Altcoins face sharp declines amid market sell-off.

The cryptocurrency market has witnessed a massive wipeout of nearly $248 million in just 4 hours coinciding with Iran’s attack on Israel. The long positions were the most affected as they accounted for most of the liquidations with $221 million liquidated as opposed to the $18 million from short positions.

This unexpected drop, chiefly due to geopolitical risks, grabbed the attention of crypto traders and highlighted the continuing instability of the market. Various tokens witnessed substantial declines as the crypto market reacted to the increasing conflict.

Bitcoin fails as ‘digital gold’ during crisis

As the liquidation unfolded, Bitcoin, often referred to as ‘digital gold’ and a safe haven in times of crisis, did not prove worthy of this title. Rather than remaining stagnant or even appreciating during the geopolitical instability, Bitcoin took a downward trajectory. This frustrated traders who hoped that Bitcoin would serve as a hedge in uncertain times. 

Adam Cochran, a crypto analyst captured this sentiment in a tweet, stating
Bitcoin: “’We’re a global reserve of value like digital gold, that you want to hold in uncertain times’

Bitcoin during WWIII: *Dumps*”

 

See also FTX token surges 63% amid hope of repayment

Cochran’s comments show how the market seems to have been caught off guard as Bitcoin behaved poorly in the recent geopolitical rift between Israel and Iran, despite its positioning as a stable asset in crises.

Major cryptocurrencies tumble as the crypto market reacts

The recent market sell-off did not only affect the price of Bitcoin. In addition, many altcoins tumbled in value as well. Well-known tokens like Shiba Inu (SHIB), Polkadot (DOT) and Worldcoin (WLD), suffered losses between 2% and 4%. Ethereum Classic (ETC) and Strike (STRK), saw even sharper declines with Strike (STRK), lowering by over 4%. The widespread nature of the losses suggests that the entire cryptocurrency market was affected by the liquidation.

This liquidation event highlights the dangers of leverage trading, where price falls activate margin calls, which leads to the sale of more assets that accelerate the downward momentum. As the liquidations accumulated, traders who had taken highly leveraged positions on the other hand were at risk which increased the overall volatility in the market.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

MARA's stock jumps after raising $1 billion via convertible notes to buy more bitcoin

MARA Holdings announced the successful closing of its $1 billion offering of 0% convertible senior notes due 2030.The bitcoin miner plans to allocate around $199 million of the proceeds to repurchase $212 million in principal of its existing convertible notes due 2026. The remaining funds will be used to acquire more bitcoin.

The Block2024/11/21 16:11

Gold loses luster as institutional demand fuels bitcoin price surge, analysts say

Bitcoin’s 46% surge over the past month, contrasted with gold’s 3% decline, highlights a shifting investor preference toward alternative store-of-value assets, analysts say.Derivatives traders are buying up bitcoin call options ahead of Trump’s inauguration, signaling strong bullish sentiment for the beginning of 2024.

The Block2024/11/21 16:11

SEC is 'engaging' Solana ETF applicants: report

SEC “engaging” on Solana ETF applications, sparking optimism for potential approval in 2025.VanEck, 21Shares, and Bitwise lead Solana ETF filings amid pro-crypto White House hopes.SOL token rises 4.6% to $247.91, bolstered by Solana’s strong DeFi ecosystem and demand.

The Block2024/11/21 16:11