Bitcoin plunged to under $63,600 after reports of an Israeli preemptive attack on Iran escalated geopolitical tensions. The cryptocurrency, trading around $66,000, dropped sharply within minutes as the news broke on Saturday morning. This volatility led to significant liquidations exceeding $450 million in 24 hours, with $185 million occurring in the past hour alone. Altcoins also fell by at least 2% as the crypto market reacted to the potential for broader conflict.
Bitcoin’s price volatility intensified this week, with the asset dropping to a multi-day low well under $63,600. The latest decline was likely prompted by quickly escalating global tensions between Iran and Israel.
Multiple news outlets reported that Israel launched a preemptive attack against Iran. Israel’s Defense Minister, Israel Katz, announced a state of emergency “because they expect retaliation from Iran by drones and other strikes.”
Given cryptocurrency markets operate on weekends, the effects were immediate. Bitcoin fell from $66,000 to $63,600 in minutes before recovering slightly to $64,000.
The asset is down over $4,000 since being rejected at $68,000 the previous day. It had previously peaked at $70,000 on Wednesday after bouncing from a multi-week low of $62,500.
Altcoins experienced similar volatility, with many dropping 2% or more in the past hour. Consequently, liquidations rose sharply, hitting $450 million on a 24-hour scale.
