Bitcoin experienced its largest decline since March 2023, plunging 7.7% on Saturday. The significant drop in value was observed amidst heightened global geopolitical tensions and a broader sell-off in the cryptocurrency market. By 11:36 a.m. Sunday in Singapore, Bitcoin had partially recovered, trading at approximately $63,230. Other major cryptocurrencies including Ether, Solana, and Dogecoin also reported losses over the past 24 hours.
The sharp downturn in cryptocurrency values coincides with an escalation in Middle Eastern conflicts, specifically between Iran and Israel. Following an Israeli strike in Syria that resulted in the death of top Iranian military officers, Iran retaliated with drone and missile attacks on Israel, marking a dangerous escalation in regional tensions. This geopolitical turmoil influenced global markets, impacting asset classes beyond cryptocurrencies.
The cryptocurrency fluctuations were observed globally, with the recovery noted in Singaporean trading sessions. The geopolitical incidents contributing to market unease occurred in Israel and Syria, with wider implications for global financial markets.
The decline in Bitcoin’s value occurred over the weekend, a period when digital asset markets continue to operate, unlike traditional financial markets. This timing provides crypto investors with indications of the potential market mood when traditional markets reopen on Monday.
According to Zaheer Ebtikar, founder of crypto fund Split Capital, the continuation of the cryptocurrency sell-off may depend on further escalations in the Middle Eastern conflict. The market downturn was also fueled by significant liquidations in bullish crypto bets, with Coinglass reporting about $1.5 billion in liquidations on Friday and Saturday. This marked one of the most intense periods of liquidations in recent months, exacerbated by high leverage in the crypto markets. Additionally, the broader market’s anxiety was heightened by upcoming events like the Bitcoin halving, scheduled for around April 20, which is expected to reduce the new supply of Bitcoin by half, historically influencing price increases, though current market sentiment remains uncertain.
