After Iran's drone attack on Israel on April 13, the crypto market reacted; Bitcoin (BTC) fell more than 8% from its value to trade at $61,514.
The latest correction marked the continuation of a trend that began on April 12 and worsened the next day.
Analysts estimate that the crypto market liquidated more than $860 million in assets in two days; The price of Bitcoin initially fell from $71,000 to $65,000 and then fell even further to the $61,000 mark.
Bitcoin price chart April 10-13 | Source: CoinGecko
Market watchers have suggested that the initial decline was due to news from the Federal Reserve signaling that it was in no hurry to cut interest rates.
This attitude is due to stubborn inflation rates that are causing unrest at home and influencing expectations for policy adjustments worldwide.
The second drop was due to growing tensions between Iran and Israel, with crypto traders being the first to react to the news as traditional financial markets were closed over the weekend.
Bitcoin is trading at $64,123 at last check, still down 5% from 24 hours ago. In the seven-day and 14-day periods, the loss is 7.5% and 8.6%, respectively. Over 30 days, the price drop is just over 6%.
The world's largest cryptocurrency by market capitalization is also down 13% from its highest price ever, which was $73,798 in March, but is still more than double what it was a year ago.
Experts at QCP said that Iran's attack on Israel caused great fear in the market. Ethereum (ETH) fell to $2,850 and other cryptocurrencies fell by an average of 20-30%.
According to CoinGecko, among the 100 largest cryptocurrencies by market capitalization, only the Leo token (LEO), Bittensor (TAO), Celestia (TIA) and Wormhole (W) recorded gains in the last 24 hours.
The crypto data aggregator also said that the sector's total market capitalization fell 5.2% to $2.43 trillion after April 13.
Despite all this, some analysts consider this decline to be normal.
Benjamin Cowan, founder of Into The Cryptoverse, pointed out that the crypto market has experienced similar declines before. Meanwhile, Michael Saylor, Executive Chairman of MicroStrategy, reiterated his now famous statement that chaos is good for Bitcoin.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.