Crypto Markets Plunge Over $1 Billion Liquidated Amid Iran-Israel Tensions

A significant sell-off occurred in crypto markets on Friday due to reports of an Israeli airstrike on Iran. Key points include:

Bitcoin dropped 5%, falling below $104,000.
Altcoins experienced losses between 6% and 9%.
Over $1 billion in liquidations occurred, primarily affecting long positions.

Market Reactions

In response to rising tensions:

S&P 500 futures fell 1.9%.
Oil prices surged over 12%, reaching approximately $77 per barrel.
Gold rose past $3,400 an ounce as investors moved to safe assets.

Crypto Market Outlook

Arthur Hayes, former BitMEX CEO, highlighted potential risks, citing US tariffs. Ethereum declined by 8% to $2,505, approaching a critical support level. Other cryptocurrencies fell up to 10% within hours.

Short-term market views vary:

Some traders anticipate a rebound once tensions subside.
Upcoming US CPI data may influence further market movement.

Volatility is expected to persist, with analysts suggesting Bitcoin could drop to $95,000 if selling pressure continues. Monitoring safe-haven asset performance and geopolitical developments will be crucial moving forward.