Bitcoin’s price briefly dipped below the important $60,000 support level on Friday, experiencing a 5.44% drop in just two hours due to escalating tensions in the Middle East. On April 19, the price of Bitcoin briefly fell to $59,698 before quickly recovering to $61,352. This is a significant development because if the price falls to $59,000, approximately $243 million worth of long positions will be liquidated, according to CoinGlass data. In the last four hours, $34.03 million in Bitcoin long positions have already been liquidated.
The drop in Bitcoin’s price coincided with reports from Iranian state media about explosions at Isfahan airport in central Iran. This situation is reminiscent of a similar event that occurred on April 13 when Bitcoin’s price experienced volatility after Iran launched an attack on Israel, resulting in an 8.4% decline. Within minutes of the attack, the price decline wiped out over $130 million in market capitalization.
Bitcoin holders are also preparing for increased volatility as the Bitcoin halving event approaches on April 20. This event, which occurs every four years and halves miners’ rewards, could have a significant impact on the market. The Crypto Fear & Greed Index, a tool that tracks market sentiment in cryptocurrency markets, has dropped 13 points since last week’s greed index of 79.
While Bitcoin has been trading above the $60,000 mark for the past week, it briefly dropped from an opening of $63,814 on April 17 to an intra-day low of $59,648, a decline of 7.5%, according to data from Cointelegraph Markets Pro. Open Interest in Bitcoin has also decreased by approximately 17.6% to $28.06 billion over the past week.
Ether, the second-largest cryptocurrency by market capitalization, also experienced a sharp decline, falling 5% below its critical $3,000 price level before rebounding. The overall crypto market cap currently stands at $2.26 trillion, down 0.53% in the last 24 hours.
In summary, Bitcoin’s price drop below $60,000, fueled by geopolitical tensions in the Middle East, has raised concerns among investors. The upcoming Bitcoin halving event and the overall sentiment in the cryptocurrency market add to the anticipation of increased volatility.