NAIROBI (CoinChapter.com) — The cryptocurrency market has been hit by a significant downturn, with both Bitcoin and Ethereum experiencing substantial price drops. The global cryptocurrency market cap currently stands at $2.46 Trillion, a 4.5% decline in the last 24 hours.
Bitcoin and Ethereum Prices Plunge Amid Geopolitical Conflict
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Bitcoin, the flagship cryptocurrency, saw a sharp decline on April 13th, plummeting over 8.4% to a price of $64,172. This nosedive was triggered by escalating political tensions in the Middle East as Iran launched an attack on Israel.
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The sell-off impacted other cryptocurrencies like Ethereum, which was trading at $3,049, down 9.81% to $2,927. The broader cryptocurrency market experienced a significant drawdown, with Bitcoin dropping from around $67,000 to $61,625, wiping out over $130 million in market capitalization within minutes.
Consequently, the drawdown triggered the largest leverage washout in a month, liquidating some $850 million of leveraged derivatives trading positions across all digital assets, according to CoinGlass data. Approximately $770 million of these positions were long bets, caught off-guard by the sudden decline.
A Glimmer of Hope Amid the Turmoil
While the market bleeds, a beacon of hope shines through. Hong Kong’s spot ETF for Bitcoin and Ethereum could receive approval as early as Monday, potentially injecting an estimated $25 billion into the Bitcoin market alone. This news could be the catalyst the market desperately needs, reversing the downturn and revitalizing the entire cryptocurrency ecosystem.
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In conclusion, the cryptocurrency market has suffered a severe downturn, with Bitcoin and Ethereum experiencing sharp price drops. Escalating geopolitical tensions in the Middle East seem to fuel the sell-off, triggering investor uncertainty and panic. Investors will closely monitor the market for signs of recovery or events that could spark a new bull run.
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