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Why Crypto Market Is Down Today? $240B Wiped Out Amid Israel-Iran Tensions
The cryptocurrency market has taken a significant hit in the past week, with over $240 billion wiped out in value. This massive loss is attributed to growing tensions between Israel and Iran, which have sparked concerns about potential US involvement in the conflict.
As of June 21, the total cryptocurrency market has dropped by 1.26% to reach $3.21 trillion. Bitcoin, the largest cryptocurrency by market capitalization, has plummeted to a low of $103,127, a staggering 2% decline over seven days. Ethereum and other altcoins have suffered even more significant losses, with Ethereum itself dropping to $2,456, a devastating 10% drop.
At the heart of this crypto market crash are the escalating tensions between Israel and Iran. Investors are becoming increasingly anxious about the potential for US involvement in the conflict, which has sent shockwaves through the global financial markets. Bitcoin’s price drop from $108,000 to $103,000 in a week is a stark indication of the heightened risk aversion.
Another crucial factor contributing to this downturn is the actions of large-scale investors, or “whales.” These whales have been selling substantial amounts of Bitcoin and transitioning out of altcoins on exchanges. According to Glassnode data, wallets holding BTC for 6-12 months sold over $900 million in a recent period. Long-term holders are also starting to take profits, with early June seeing a massive profit-taking event worth $1.2 billion.
The pressure mounted by the mass liquidations of trader positions has further exacerbated the market’s downward trajectory. In the past 24 hours alone, an astonishing $503 million in crypto assets were forcibly sold or “liquidated,” affecting over 134,000 traders. The majority of these losses occurred on Ethereum, with a staggering $183 million being wiped out.
Source: coinpedia.org
