NAIROBI (CoinChapter.com) — The cryptocurrency market has been hit by a significant downturn, with both Bitcoin and Ethereum experiencing substantial price drops. The global cryptocurrency market cap currently stands at $2.46 Trillion, a 4.5% decline in the last 24 hours.
Bitcoin and Ethereum Prices Plunge Amid Geopolitical Conflict
BTC/USD 1-day price chart. Source: CoinGenkoBitcoin, the flagship cryptocurrency, saw a sharp decline on April 13th, plummeting over 8.4% to a price of $64,172. This nosedive was triggered by escalating political tensions in the Middle East as Iran launched an attack on Israel.
ETH/USD 1-day price chart. Source: CoinMarkertCapThe sell-off impacted other cryptocurrencies like Ethereum, which was trading at $3,049, down 9.81% to $2,927. The broader cryptocurrency market experienced a significant drawdown, with Bitcoin dropping from around $67,000 to $61,625, wiping out over $130 million in market capitalization within minutes.
Consequently, the drawdown triggered the largest leverage washout in a month, liquidating some $850 million of leveraged derivatives trading positions across all digital assets, according to CoinGlass data. Approximately $770 million of these positions were long bets, caught off-guard by the sudden decline.
A Glimmer of Hope Amid the Turmoil
While the market bleeds, a beacon of hope shines through. Hong Kong’s spot ETF for Bitcoin and Ethereum could receive approval as early as Monday, potentially injecting an estimated $25 billion into the Bitcoin market alone. This news could be the catalyst the market desperately needs, reversing the downturn and revitalizing the entire cryptocurrency ecosystem.
Hong Kong Bitcoin ETF approval is imminent. Source: XIn conclusion, the cryptocurrency market has suffered a severe downturn, with Bitcoin and Ethereum experiencing sharp price drops. Escalating geopolitical tensions in the Middle East seem to fuel the sell-off, triggering investor uncertainty and panic. Investors will closely monitor the market for signs of recovery or events that could spark a new bull run.
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