Miami, Florida – The price of Bitcoin plummeted to just under $63,000 as market momentum slowed down ahead of the highly anticipated block reward halving. Bitcoin (BTC) dipped to a low of $61,867, wiping out the gains it had made over the past month, with current trading hovering around $62,500, marking a 5.6% decrease for the day and an 11.2% decline for the week, according to CoinGecko data.
The broader cryptocurrency market followed suit, experiencing a 6.4% drop in the combined market cap of all cryptocurrencies to $2.4 trillion overnight. The top 20 cryptocurrencies by market cap (excluding stablecoins) saw declines, with Solana (SOL), Toncoin (TON), and Bitcoin Cash (BCH) all showing double-digit drops for the day.
In the last 24 hours, the crypto market witnessed over $327 million in liquidations, with longs accounting for over $260 million of that amount. Bitcoin alone saw more than $83 million in longs liquidated during this period, as reported by CoinGlass data.
The recent price downturn has shifted the narrative from heightened volatility due to the halving to broader geopolitical concerns. Tensions in the Middle East, such as Israeli airstrikes in Gaza and a direct military attack by Iran on Israel, have contributed to market jitters.
As traditional safe haven assets are sought after, the spot price of gold surged to over $2,400 on Monday following the events in the Middle East. Meanwhile, the U.S. dollar index reached a year-to-date high, underscoring a strong dollar and exacerbating the slowdown in the crypto market. The index’s performance reflects the dollar’s value against various major foreign currencies.
Amidst these developments, investors and analysts are closely monitoring the evolving geopolitical landscape and its potential impact on financial markets, including cryptocurrencies. The market remains sensitive to geopolitical events and macroeconomic factors that could influence investor sentiment and asset prices in the short and long term.