In the past 24 hours, the crypto market has faced a wave of liquidations, wiping out over $527 million in positions. This dramatic turn of events follows sharp declines in Bitcoin, Ethereum, and other digital assets, with bulls taking the hardest hit. The cause? Rising geopolitical tensions in the Middle East, particularly between Israel, Iran, and their neighboring nations.
Middle East Conflict Rattles Global Markets
The catalyst for this market upheaval came from unsettling developments in the Middle East. On Tuesday, Iran launched missile strikes on Israel, heightening fears of a broader conflict that could potentially escalate into a world war. The rivalry between Israel, Iran, Lebanon, and Palestine has been brewing for years, but recent events have pushed these tensions to new heights.
Cryptocurrencies, already sensitive to global market conditions, were not immune to the effects. Investors, gripped by uncertainty, began offloading their positions, triggering a sharp selloff in Bitcoin and other assets. Despite the optimistic outlook for “Uptober,” a term often associated with bullish crypto sentiment in October, Bitcoin slid over 4%, landing at $61,669.
Altcoins Follow Bitcoin’s Plunge
Bitcoin wasn’t alone in its decline. Altcoins like Ethereum and Solana also saw significant drops. Ethereum, the second-largest cryptocurrency by market cap, plummeted 6% to $2,480, while Solana (SOL) fell over 5% to $148. These sharp declines triggered widespread liquidations across the crypto market.
Data from Coinglass shows that nearly 155,000 traders were “rekt” as a result of the market downturn, with over half a billion dollars in positions liquidated. Bitcoin led the liquidation charge, with $140 million worth of positions wiped from the market, including $124.6 million in long positions. Short positions worth $15.8 million were also affected.
Ethereum traders lost a staggering $109.36 million, with bullish positions accounting for $97.8 million. Meanwhile, Solana saw $18.91 million in liquidations, while SUI traders experienced $11.88 million in losses, with an interesting twist: a majority of SUI’s liquidations affected short traders as the asset rebounded late on Tuesday.
Binance Dominates Liquidation Charts
One of the biggest losers in this liquidation spree was a trader on Binance, who suffered a $12.66 million loss trading the BTC/USDT pair. Binance, the world’s largest cryptocurrency exchange, accounted for $260 million of the total liquidations, making it the platform with the highest liquidation volume.
Also Read: Bitcoin’s Bounce Back? BTC Eyes $73K After Dip Below $64K With Bullish Indicators!
The ongoing geopolitical uncertainty and fear of a potential World War III could continue to weigh on the market. As tensions in the Middle East escalate, crypto traders and investors may brace for further volatility. While some assets may recover in the short term, the broader market sentiment remains fragile.
For now, the focus will be on how these geopolitical developments unfold and their impact on both traditional and crypto markets.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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