Today, the crypto market experienced a major decline as geopolitical tensions and economic uncertainties triggered widespread selling. The decline in traditional markets caused cryptocurrencies to join the decline.
Bitcoin quickly fell to $65,000 after rising to almost $71,000 yesterday. As of the moment the article was published, Bitcoin returned to $ 67,424. However, this decline was not just a slight decline, but rather a very significant decline. Futures market data shows it’s been a brutal day for leveraged investors; Over $400 million in leveraged positions were liquidated in just one hour. The total damage to the market during the 24-hour period was recorded as a whopping $860 million for 270,993 traders, according to Coinglass.
This sudden decline in the crypto market appears to be the result of a combination of factors. First of all, geopolitical tensions and economic uncertainties impact cryptocurrencies just as they do traditional asset classes. In particular, major international events such as the Israel-Iran crisis can increase investors’ risk aversion, which can lead to selling pressure in the crypto market.
At the same time, this decline in the market coincided with the decline in US stock markets. Moreover, new inflation data showed an acceleration for the third consecutive month, worrying investors. When the Consumer Price Index (CPI) was higher than expected, optimism about the Fed’s interest rate cuts diminished and hopes that inflation could be brought under control weakened.
In this chaotic environment, Bitcoin achieved a market dominance of almost 56% and peaked in the crypto cycle. This shows that Bitcoin has consolidated its leading position in the crypto world despite the collapse of other markets.
Looking ahead, the crypto community’s focus is on the upcoming halving event, which will take place on April 21. This event could lead to several price corrections, according to experts such as Arthur Hayes.
Historical trends and expert opinions suggest that the halving event could cause significant fluctuations in crypto markets. However, the cryptocurrency world is constantly changing and such events can make it difficult to predict how markets will react. Therefore, investors should be careful in the coming period and closely monitor the developments in the market.
You can access current market movements here.
