"It's true that the fall is quite fast, but the price also recovers quickly."
The entire cryptocurrency market saw significant 'bleeding' yesterday as Bitcoin (BTC) plummeted to $60,000 after Iran launched drones and missiles at Israel in response to its attack in Syria.
In the hours before and after the attack, cautious risk traders diverted capital from risky markets such as cryptocurrencies to safer assets such as the United States (US) dollar.
Thus, the US dollar which measures the strength of the US dollar against a group of major foreign currencies has increased by 0.79% since April 12, 2024.
However, the crypto market is recovering now that Iran has ended its military operations against Israel, plus many analysts expect the price drop to be normal and a continuation of the upward trend may happen soon.
Through observation, the crypto market has experienced liquidations worth $2.5 billion since April 12, 2024 then $964 million in the past 24 hours and it should be known that long liquidations significantly outnumber short liquidations.
Long liquidations show that the crypto market has been overextended on the bullish side mainly due to the growing euphoria around BTC ETF inflows and the halving event.
As of this writing, BTC price has surged by 2.50% to $65,620 in the past 24 hours with a market cap of over $1 trillion but is still down 5.79% over the past week.
