Bitcoin slumps 8% after Iran attacks Israel, flashes warning for global markets

A continuation of the crypto selloff “is probably contingent on further escalation,” said Zaheer Ebtikar, founder of crypto fund Split Capital, adding “people will really look for what markets will look like on Monday.”

As Israel braced for an attack, the tension hurt stocks Friday and boosted havens such as bonds and the dollar. Coinglass data show about $1.5 billion of bullish crypto wagers via derivatives were liquidated on Friday and Saturday, one of the heaviest two-day liquidations in at least six months.

Leverage “has gotten completely overwhelmed in the last three days, so that’s caused prices to materially deteriorate” in digital assets, said Ebtikar.

is down about $10,000 from a mid-March record of $73,798. Demand for dedicated US exchange-traded funds that debuted in January helped the token reach an all-time high but net inflows into the products have moderated lately.

Crypto speculators are awaiting the so-called Bitcoin halving, which will reduce new supply of the token in half and is expected around April 20. Historically, the halving has proved a tailwind for prices, though there are growing doubts about whether a repeat is likely given Bitcoin recently hit a historical peak.

Source: Forex-Markets-Economic Times