The cryptocurrency market declined sharply following geopolitical tensions sparked by President Donald Trump’s address regarding conflict with Iran. The overall market cap fell over 3%, with Bitcoin and Ethereum dropping nearly 4%. This triggered significant liquidations totaling nearly $350 million, primarily affecting long-positioned traders, and sent oil prices soaring above $107 per barrel.
The crypto market cap slid by 3.22% in a 24-hour period. Bitcoin [BTC] and Ethereum [ETH] were down 3.89% and 3.63%, respectively.
Bitcoin fell to a low of $66,200 but did not reach the $65,000 low made on the 29th of March. These price moves were a result of President Donald Trump’s address to the nation.
The S&P 500 erased $550 billion from its market cap in under half an hour, reported the Kobeissi Letter. President Trump’s threats to strike Iran’s power plants and the expectations of “two to three weeks” of further conflict sent oil prices soaring to $107.65 per barrel.
Experts have warned that the initial price shock from rising oil rates was just the beginning. The brunt of this development’s impact will take weeks and months to be felt.
CoinGlass data showed $349.84 million in liquidations across the market. Ethereum had the biggest share of liquidations at $90.83 million, with Bitcoin second at $80.89 million.
It was mostly the long-positioned traders who suffered from the president’s address and market-wide fear. After the 28th of March, the Funding Rate dipped into negative territory once again.
It indicated that the perpetuals contract was trading lower than the spot price, signifying heavy bearish sentiment in the short-term. The recent sell-off came within the long-term bearish trend of Bitcoin.
Zooming in on the recent weeks’ price action, the impact was not trend-changing. However, the crucial point remained the $65,600 level, as a 4-hour trading session close below this level would shift the timeframe’s swing structure bearishly.
