Crypto markets were rocked as Bitcoin plunged over $4,500 in minutes, erasing billions in value and triggering massive liquidations. Traders saw more than $209 million in leveraged positions wiped out in just one hour, while the broader crypto market lost approximately $72 billion.
Before the crash, Bitcoin was hovering near $67,730, before steadily declining to a low of around $63,000, and has since slightly bounced back to $63,651.73, marking a 6.44% drop in 24 hours. Its market capitalization fell to $1.27 trillion, reflecting growing investor panic.
Analysts linked the sudden downturn to rising geopolitical tensions in the Middle East, particularly escalating military activity between Israel and Iran, with United States reportedly involved in broader operations. Explosions were reported in multiple cities, creating uncertainty that pushed investors away from risky assets like cryptocurrencies.
The crash highlights the crypto market’s vulnerability to external shocks, particularly geopolitical risks. Investors are reportedly moving to safer assets as global tensions fuel a “risk-off” sentiment across financial markets.
Market watchers have warned that volatility is likely to continue, with further price swings expected in Bitcoin and other cryptocurrencies. Traditional financial markets may also feel pressure if tensions persist, creating a ripple effect across global economies.
Also read: Bitcoin Reaches New All-Time Record High
