Bitcoin Plummets to 4-Month Low as Geopolitics Squeeze Markets

Bitcoin plummeted to $81,058 during early Friday trading, marking its lowest point since April and triggering $1.68 billion in liquidations across 270,000 traders. The cryptocurrency has declined 35% from its October all-time high of $126,000.

CoinGlass data shows that 93% of the liquidations were leveraged long positions, predominantly in Bitcoin and Ethereum. This suggests that many investors had bet on a continued rise in prices but got caught out by the sudden drop.

The wider crypto market lost $200 billion in total capitalization over 24 hours as Bitcoin reached a crucial support zone on the monthly timeframe. The decline was partly due to geopolitical tensions escalating as the U.S. dispatched another warship to the Middle East amid rising friction with Iran.