Key Takeaways
- The Israel-Iran war sparks fear as the crypto market sees an over 10% crash for altcoins, with investors panicking.
- Altcoins could see more price crashes if the price of Bitcoin fails to hold around its $100k support.
- Over $1.2 billion was liquidated in derivatives as the Israel-Iran war created uncertainty for crypto and traditional markets.
The Middle East war between Israel and Iran had a turn of events during the early hours of Friday, June 13, as the financial market, both crypto and traditional finance, were sent into shockwaves, leading to prices crashing to weekly lows.
Bitcoin, Ethereum, and other altcoins all suffered a 5%- 8% price crash due to crypto panics and liquidations across the market. This could see the market range over the weekend ahead of a potential rally in the coming weeks as the tension between two nations persists.
Market Reaction To War Leading to Liquidations
Source – Market Reaction to Israel-Iran War From Quantifycrypto
Israel’s launch of a military operation against Iran has gotten some headlines in the media space, leading to digital assets suffering price crashes across the market as the news broke out about Israel’s airstrikes targeting Iranian nuclear and military facilities.
Despite the chances of Israel’s invasion having attracted attention across the media, this uncertainty in the reaction to potential war has negatively affected the crypto and traditional markets as the price of Bitcoin crashed from its high of $109,500 to $102,700.
The sudden crash in Bitcoin and altcoins indicates the market’s reaction and feeling of uncertainty, which could have adverse effects on the market.
The price of BTC trading above $100,000 is good for the market as it continues to protect its bullish price action, with bulls dominating the price.
According to on-chain data from Quantifycrypto, the market has suffered significant price crashes, resulting in over $1.2 billion being liquidated from the market following these crashes.
Will Bitcoin Price Recover?
Historically, June has been a challenging month for Bitcoin, despite the price showing a strong rally to the upside. However, the market failed to reclaim new all-time highs by a few thousand dollars, as the price traded around $110,500 before falling towards a region of $109,300 just before the market crash.
Although fears have arisen in the crypto market due to uncertainty, crypto experts and investors remain optimistic about Bitcoin’s potential. A price above $100,000 would have strong potential for a rebound toward its previous all-time highs.
A break above its high of $112,000 for BTC could see the price of Bitcoin rally strongly from bulls towards a high of $120,000, as this has been a long-standing speculation among experts. Many experts believe the price will reach $120,000 to $130,000 before the price range allows altcoins to rally higher.
