14.06.2025 01:40
Escalating tensions in the Middle East, ignited by an Israeli airstrike on Iran, sent shockwaves through the cryptocurrency market, triggering a significant sell-off and over $1.15 billion in liquidations. Altcoins bore the brunt of this sudden downturn, experiencing sharp declines across the board.
Ethereum, Solana, and XRP led the altcoin plunge, falling 7.8%, 8.4%, and 3.9% respectively. This dramatic drop contrasted with the relative stability of stablecoins, which maintained their dollar pegs, highlighting the panic that gripped volatile assets. While Bitcoin also declined, falling 2.2% to $104,976, it demonstrated greater resilience than its altcoin counterparts, although intraday trading below $104,000 raised concerns about a potential retest of the $100,000 support level, with analysts suggesting a possible decline to $95,000 if selling pressure persists.
CoinGlass data revealed a surge in liquidations, dominated by Bitcoin ($449.95 million) and Ethereum ($301.92 million), with a smaller contribution from Solana ($53.46 million). The overwhelming majority of these liquidations were long positions, reflecting a significant shift in market sentiment. Indeed, predictive models indicated an increased probability of further long liquidations, reaching 55.8%. This bearish sentiment was further underscored by a decline in Bitcoin's open interest in the derivatives market, falling 4.18% to $69.81 billion, accompanied by a drop in the OI-weighted funding rate from 0.0082% to 0.0019%, signaling weakening bullish conviction. Furthermore, the long-to-short ratio plummeted to 0.9223, clearly indicating a shift towards bearish positions, with short liquidations significantly lower at just $21 million compared to the $422 million in long liquidations.
The geopolitical turmoil extended beyond the crypto market, impacting global financial instruments. The S&P 500 futures experienced a 1.9% loss, while WTI oil prices surged 12% to $77 per barrel. Gold, a traditional safe-haven asset, saw a price spike surpassing $3,400 an ounce, reflecting investors' flight to safety. Reports from Iran indicated civilian and official casualties resulting from the airstrike, while the probability of a renewed nuclear deal with the U.S. plummeted to a mere 4.7% according to Myriad. Meanwhile, U.S. Secretary of State Marco Rubio publicly stated that the U.S. was not involved in the attack, a statement that, while attempting to alleviate tensions, nonetheless failed to fully quell market anxieties. Some market participants...
