The aftermath of Iran’s drone strike on Israel on April 13 reverberated through the cryptocurrency markets, triggering a sharp decline in Bitcoin (BTC) prices by over 8%, with the flagship cryptocurrency trading at $61,514. This downturn continued a trend that began on April 12 and intensified the following day.
Analysts calculated that the crypto market witnessed liquidations exceeding $860 million over the course of two days, as Bitcoin’s price initially slid from $71,000 to $65,000 before plummeting further to the $61,000 range.
Observers attribute the initial drop to announcements from the U.S. Federal Reserve, indicating a reluctance to swiftly adjust interest rates amidst persistent inflation concerns, causing uncertainty among investors both domestically and globally.
The subsequent decline was linked to escalating tensions between Iran and Israel, prompting swift reactions from crypto traders as traditional financial markets remained closed for the weekend. Despite a slight recovery, Bitcoin was still trading at $64,123, representing a 5% decrease over 24 hours. Over the past week and two weeks, losses amounted to 7.5% and 8.6%, respectively, while the 30-day decline stood at just over 6%.
Although Bitcoin has retreated 13% from its all-time high of $73,798 in March, it remains more than double its value from a year ago.
Experts from QCP highlighted the significant market fear induced by Iran’s attack on Israel, resulting in Ethereum (ETH) dropping to $2,850 and an average decline of 20-30% across other cryptocurrencies.
According to CoinGecko, only a handful of cryptocurrencies, including Leo token (LEO), Bittensor (TAO), Celestia (TIA), and Wormhole (W), registered gains in the past 24 hours among the top 100 largest by market capitalization.
Despite the downturn, the crypto market’s total capitalization decreased by 5.2% to $2.43 trillion following the events of April 13. Nevertheless, some analysts consider such corrections as part of the market’s natural cycle.
Benjamin Cowan, founder of Into The Cryptoverse, noted the precedent of similar drops in the crypto market’s history, while MicroStrategy’s Executive Chairman Michael Saylor reiterated his belief that chaos presents opportunities for Bitcoin.
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