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<a href="https://xpertsstudio.com/will-bitcoin-bounce-or-dump-all-eyes-are-on-this-weeks-major-economic-events/” title=”Will Bitcoin Bounce or Dump? All Eyes Are on This Week’s Major Economic Events”>Bitcoin dropped in value at the start of the week after a brief retest of the $79,000 resistance level overnight on Sunday. The number one cryptocurrency fell below the $78,000 price range in response to renewed tensions between the US and Iran, and geopolitical risks in global markets.
On Sunday, US forces struck two Iranian rocket launchers positioned on Larak Island in the Strait of Hormuz, the first publicly known US strike against Iranian positions in more than a month.
Washington said the launchers had been prepared to launch rockets containing sea mines into the waterway, following missile and drone strikes from Iran against US targets in Jordan.
Later, US President Donald Trump shared an AI-generated video of explosions on Kharg Island — the main oil export terminal of Iran — with a tweet that suggested the island was being destroyed. However there was no confirmation of a strike on Kharg itself, nor was there any indication from US officials that the island had been struck
But the war soon spread to the traditional markets, with Brent crude breaching the $90 per barrel barrier as traders began to consider risks to energy supplies through the Gulf.
Declines followed in the Asia-Pacific region, with Japan’s Nikkei down about 2%. South Korean and Chinese equities also fell, and US and European stock futures were lower. The yen traded at more than 160 to the dollar.
Cryptocurrency prices also followed the risk-off trend: Bitcoin plunged over $2,000, and the high volume of on-chain transfers added another
The original report noted that market maker Wintermute had deposited 5100 BTC▲$62,630.00 — worth close to $400 million — on the crypto exchange Binance, which had occurred over two days. While exchange deposits do not prove that coins were sold, they are commonly monitored as they are likely to happen.
Ethereum fell as well following on-chain tracker Lookonchain announcing that a whale or institution had deposited nearly 41,000 ETH▲$1,761.17 worth over $100 million to exchanges. This too does not confirm a sale, but large ETH inflows into exchanges can indicate a potential sell in the near future.
The fall resulted in the liquidation of leveraged traders; the report identified over $400 million of liquidations in the last 24 hours, most of which were long positions
Compared to ETH long positions, which were almost $100 million in total, BTC long positions were worth $62.6 million. More than 100,000 leveraged trading accounts were liquidated. The largest liquidation was a $6.12 million ETH position on Aster.
It shows how quickly crypto markets respond to geopolitical challenges, higher energy prices, fragile risk sentiment and large on-chain transfers.
The US-Iran confrontation was met with Bitcoin inflows, the loss of the late-Sunday rebound and a resurgence in inflation fears, driven by rising oil prices, increasing the macro risk for speculative assets that were already sensitive to interest rate and liquidity expectations.
Source: bitcoinfoundation.org