Bitcoin’s price encountered a brief drop below the crucial $60,000 support level once again on Friday, declining by 5.44% within a span of two hours. This decline coincided with escalating tensions in the Middle East, particularly with reports of explosions at Isfahan airport in central Iran. If Bitcoin’s price were to fall to $59,000, it would lead to the liquidation of approximately $243 million in long positions. In the past four hours alone, $34.03 million worth of Bitcoin long positions have been liquidated.
This situation is reminiscent of a similar event that occurred on April 13, when Bitcoin’s price experienced volatility following an attack by Iran on Israel, leading to an 8.4% decline. Within minutes of the attack, the decline in price wiped out over $130 million in market capitalization.
Bitcoin holders are also preparing for increased volatility as the Bitcoin halving event approaches on April 20. This event occurs every four years and halves miners’ rewards. Additionally, the Crypto Fear & Greed Index, a tool used to gauge market sentiment in cryptocurrency markets, has dropped by 13 points since last week’s index of 79, indicating a decrease in greed.
Over the past seven days, Bitcoin’s price has been hovering above the $60,000 mark but experienced a temporary decline from an opening of $63,814 on April 17. It dropped by as much as 7.5% to an intra-day low of $59,648. Open Interest in Bitcoin has also seen a decline of approximately 17.6% to $28.06 billion over the same period.
Ether, the second-largest cryptocurrency by market capitalization, also suffered a significant decline, falling 5% below its critical $3,000 price level before bouncing back. The overall crypto market cap currently stands at $2.26 trillion, with a 0.53% decrease in the past 24 hours.
In other news, there is a growing trend of hip hop stars embracing cryptocurrencies, with many of them showing a particular interest in Bitcoin.