The Cryptocurrency market is shaking for the past 24 hours of a sharp sale, powered by a mix of geopolitical tensions, technical malfunctions and massive liquidations.
What has the crash activated?
The immediate cause of the market crash was an important geopolitical event – American air strikes at Iranian nuclear locations on 22 June. Ordered by President Donald Trump, the attack increased the fear of a broader conflict in the middle. The move led to a worldwide “risk-off” sentiment, causing investors to dump risky assets such as cryptocurrencies in favor of safer options such as gold and the US dollar.
As a result, more than $ 636 million were liquidated in crypto lifting position positions, causing shock waves to be sent by the market.
How do cryptos react?
Bitcoin (BTC) fell sharply to $ 100,000 before gaining a partial recovery. Despite the bouncing, the general market sentiment remains in a difficult place.
Ethereum was also confronted with heavy sales pressure and fell more than 10% to around $ 2,196 in one day. XRP was also not spared and almost 9% to act at $ 1.97. Other cryptocurrencies such as Solana (SOL), Cardano (ADA) and Dogecoin (doge) members also lose ranging from 7% to 15%.
What is the next step for the market?
Analysts warn that, unless the tensions between the US and Iran convenience, cryptocurrencies will probably remain under pressure. Now all attention is whether Bitcoin can retain above the support level of $ 100,000. If it fails, further losses can drag the market lower.
UPDATE FOR MARKET SENDENTION
The Crypto Fear & Greed Index is currently at 40 (neutral), but this can quickly swing to “fear” if geopolitical tensions intensify in the coming days.
That is why the cryptomarkt is currently more driven by geopolitical events than technical patterns. Until the situation stabilizes, the volatility is expected to remain high.