Altcoins
Bitcoin (BTC) takes a big hit, falls back to $66,000 – Altcoins fall even further
Bitcoin (BTC) and other cryptocurrencies saw a sharp decline on Friday (April 12) as negative sentiment from traditional markets, reinforced by rising geopolitical tensions, spilled over into the digital asset space .
In a quick sell-off during the US trading session, Bitcoin fell below $66,000, after brushing close to the $71,000 mark just hours earlier. At the time of writing, Bitcoin had recovered slightly to $66,700, representing a drop of over 5% in the last 24 hours.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, saw a decline of up to 12% to $3,100, although a subsequent rally reduced the loss to 8%.
Smaller cryptocurrencies followed Bitcoin and suffered losses of 15-20%
During this volatile market episode, smaller cryptocurrencies were hit with even steeper declines. The CoinDesk 20 Index, which tracks major digital assets, fell nearly 10%. In particular, Cardano’s ADA, Avalanche’s AVAX, Bitcoin Cash (BCH)Filecoin (FIL) and Aptos (APT) saw sharp declines ranging from 15-20%.
This slowdown led to the largest leveraged liquidation event in a month, with approximately $850 million of leveraged derivatives positions across all cryptocurrencies wiped out, data shows from CoinGlass. Of these, $770 million were long positions that had anticipated price increases but were abruptly liquidated due to the sudden market drop.
Source: Coinglass
The market slowdown coincided with a decline in U.S. stock markets, sparked by growing fears of escalating conflict in the Middle East following warnings from U.S. officials that Iran could be preparing a major attack on Israel.
A Risky Scenario Created Treasuries and the Rising US Dollar
As traders looked for protective investments, Treasuries and the U.S. Dollar Index (DXY) saw significant gains, while major U.S. stock indexes including the S&P 500 and Nasdaq 100 fell 1%. .7% shortly before the market closed. Gold, traditionally considered a safe haven, hit a new record high above $2,400 before paring its gains, and oil prices edged up 1%.
Digital asset investment firm Ryze Labs, formerly known as Sino Global Capital, said in a commentary published Friday that it expects some “near-term market slowdown” for cryptocurrencies during the impending tax season. Despite this short-term caution, Ryze Labs remains optimistic about the long-term outlook, predicting that a slowdown in quantitative tightening and possible monetary policy adjustments to support the refinancing of U.S. government debt will provide some relief to the asset class.
According to most halving predictions, Bitcoin will most likely bounce back to the $70,000 mark
Despite all the action, there is no definitive reason for Bitcoin’s slowdown today, but it appears to be a normal market correction, given that trading volumes increased by 15%. during the last day. The cryptocurrency is expected to rebound in the coming days. However, Bitcoin’s upcoming halving is likely to stabilize its price, avoiding significant declines unless an exceptionally major event occurs.
Bitcoin halving-related predictions suggest a rapid recovery, which could soon push its value above $70,000. The recent decline may simply represent a brief lull before more dramatic market activity. Bitcoin is expected to hit new record highs this month after the halving, easing current concerns about its stability.
This event is expected to influence not only the cryptocurrency market but also that of precious metals. As Bitcoin gains popularity, the price of gold could fall as investors increasingly view Bitcoin as a superior investment option. This makes the upcoming halving event particularly important in shaping alternatives to the US dollar.