Cryptocurrency Market Plummets $13 Billion Amid Escalating Iran Tensions
Leading cryptocurrencies plummeted in value alongside stocks on Thursday as escalating tensions between the US and Iran reduced investor risk appetite.
The global cryptocurrency market capitalization fell by 0.59% over the last 24 hours, dipping to $2.25 trillion. Bitcoin's price dropped back to around $64,000, while Ethereum declined to approximately $1,800, erasing earlier weekly gains.
XRP and Dogecoin also saw significant losses. Coinglass data revealed that over $250 million was liquidated from the cryptocurrency market in the past 24 hours, with a staggering $188 million in bullish long positions wiped out.
Crypto analyst Ali Martinez pointed out that Bitcoin's Sharpe ratio has fallen into negative territory, potentially creating an entry point for long-term investors. He noted that similar instances during previous bear market bottoms marked final capitulation phases.