Achi news desk-
According to Coinglass data, roughly $1.5 billion worth of bullish cryptocurrency positions via derivatives were liquidated over Friday and Saturday, marking one of the most significant two-day liquidation events in at least six months.
Image credit: Freepik
Bitcoin, the largest cryptocurrency by market cap, recorded a sharp jump to touch $66,374 (INR 55,37,518.34) as of 2:30 PM on Monday, after an early jump of as much as 8.3%. Meanwhile, smaller coins like Polkadot and Uniswap experienced even bigger gains, passing 10%.
Ethereum, the second largest crypto, jumped 3.13% today, trading at $3,244.13.
Iran has launched a series of drones and attack missiles against Israel, which is seen as a response to a previous attack in Syria led by Israel, which resulted in the death of senior Iranian military officers. This escalation in the conflict has brought the already volatile region into a new and dangerous phase.
With Iran’s actions while most stock markets around the world were closed, cryptocurrency traders found themselves in the unusual position of being among the first to react to a major geopolitical development.
As Israel braced for a possible attack, rising tensions weighed on stocks on Friday, leading to increased demand for safe-haven assets like bonds and the dollar. According to Coinglass data, roughly $1.5 billion worth of bullish cryptocurrency positions via derivatives were liquidated over Friday and Saturday , which marked one of the most significant two-day dissolution events in at least six months.
A notable military escalation between Israel and Iran would challenge the idea that bitcoin and other cryptocurrencies serve as safe havens in times of conflict, a perspective often espoused by the asset group’s backers. Back in early 2022, when Russia invaded Ukraine, cryptocurrencies experienced the beginning of a year-long market downturn.
Bitcoin is down from its mid-March high of $73,798. The introduction of dedicated US exchange-traded funds in January sparked demand, driving the token to an all-time high. However, net inflows into these products have slowed recently.
Crypto enthusiasts are eagerly anticipating the upcoming Bitcoin crossover, which is expected to happen around April 20. Historically, the crossing event has strengthened prices, as it cuts the new supply of the token in half. However, uncertainty is growing about the likelihood of a similar price increase this time around, especially given that Bitcoin recently hit an all-time high.
Published: April 15, 2024, 2:41 PM IST
Download the Money9 app for the latest updates on personal finance.
