Geopolitical tensions pull both ways, sending Bitcoin on a roller-coaster ride
The biggest source of disruption in the crypto market today came from the Middle East. Iran’s Revolutionary Guard said explicitly that the possibility of war could not be ruled out and raised concerns about the security of undersea cables in the Strait of Hormuz. Israel also sent a hardline signal. In response, international oil prices swung sharply, with WTI crude briefly falling below $99 a barrel.
Bitcoin’s price action was sharply divided: it briefly rose above $83,000 in the morning, then plunged straight down in the afternoon, dropping below $82,000. This extreme two-way volatility triggered a “double liquidation” in leveraged markets. Around $188 million in positions were liquidated across the market over the past 24 hours, including $104 million in long positions and $84.12 million in short positions. The morning rally liquidated short sellers, while the afternoon drop then caught bullish traders who had chased the rally.
Experts say that even minor geopolitical friction in the current macroeconomic environment can be magnified by highly sensitive markets. Until the outlook for oil prices and inflation becomes clearer, the crypto market is likely to remain highly volatile.
$BTC
Join the discussion in the comments: In this kind of geopolitical conflict, do you think Bitcoin is a safe-haven asset or a risk asset?
The biggest source of disruption in the crypto market today came from the Middle East. Iran’s Revolutionary Guard said explicitly that the possibility of war could not be ruled out and raised concerns about the security of undersea cables in the Strait of Hormuz. Israel also sent a hardline signal. In response, international oil prices swung sharply, with WTI crude briefly falling below $99 a barrel.
Bitcoin’s price action was sharply divided: it briefly rose above $83,000 in the morning, then plunged straight down in the afternoon, dropping below $82,000. This extreme two-way volatility triggered a “double liquidation” in leveraged markets. Around $188 million in positions were liquidated across the market over the past 24 hours, including $104 million in long positions and $84.12 million in short positions. The morning rally liquidated short sellers, while the afternoon drop then caught bullish traders who had chased the rally.
Experts say that even minor geopolitical friction in the current macroeconomic environment can be magnified by highly sensitive markets. Until the outlook for oil prices and inflation becomes clearer, the crypto market is likely to remain highly volatile.
$BTC
Join the discussion in the comments: In this kind of geopolitical conflict, do you think Bitcoin is a safe-haven asset or a risk asset?