Bitcoin plunged below $69,200, erasing last week’s gains after President Trump issued a 48-hour ultimatum to Iran regarding the Strait of Hormuz. The cryptocurrency fell 2.2%, driven by $299 million in liquidations, predominantly affecting long positions, which accounted for 85% of the losses. This sudden geopolitical tension has rattled a previously bullish crypto market, overshadowing support from the Federal Reserve’s dovish stance on interest rates.
The market’s reaction highlights the fragility of recent bullish sentiment, with Bitcoin’s drop reflecting broader declines across major tokens. Ether, XRP, and BNB all faced significant losses, while the looming deadline for potential military action against Iranian energy infrastructure adds to the uncertainty. Traders had positioned heavily for a continued rally, making them vulnerable to this abrupt shift in sentiment.
As the situation develops, market professionals should remain vigilant. The potential for military strikes could further destabilize prices, while the current high demand for downside protection signals a cautious approach among investors.
Source: coindesk.com