Following US President Donald Trump’s announcement that airstrikes were carried out on three major nuclear facilities in Iran, there were sharp movements in the cryptocurrency market.
This morning, Ethereum lost 7.7 percent of its value, falling to $2,200, while Bitcoin remained largely stable.
Ethereum Price Dropped More Than Most Smaller Altcoins
ETH recouped some of its losses during the day, reaching its lowest intraday price since May 9. The leading cryptocurrency, Bitcoin, briefly saw $101,000 before trading close to its previous levels. Since traditional financial markets were closed over the weekend, cryptocurrencies were the first to react to the developments.
“The market is watching geopolitical developments with concern,” said Caroline Moron, co-founder of crypto derivatives market liquidity provider Orbit Markets, noting that investors are keeping a close eye on levels of $100,000 for Bitcoin and $2,000 for Ethereum. Moron said oil prices will also be on the agenda when traditional markets reopen.
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Uncertainty in the markets reached its peak when Trump announced that Iran’s facilities in Fordow, Natanz and Isfahan were hit. Trump, who stated that a “bomb-laden attack” was carried out on the Fordow facility in particular, stated that this facility was being closely monitored by the international community on suspicion of nuclear weapons production due to its uranium enrichment activities.
“Uncertainty over whether the US will attack Iran has been creating selling pressure throughout the week,” said Cosmo Jiang, general partner at Pantera Capital Management. “However, confirmation of the attacks and the imminent resolution have led prices to find a local bottom.”
According to Coinglass data, a total of $679 million worth of positions were liquidated in the crypto market in the last 24 hours. $554 million of this figure consisted of long positions and $67 million consisted of short positions.
Jiang also noted that during times of geopolitical uncertainty, “Bitcoin usually leads the recovery.”
*This is not investment advice.
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