Market Crash: How the Iran-Israel Clash Led to $500 Million in Crypto Losses

Wednesday, 2 October 2024, 12:13

Crash in the crypto market, driven by the Iran-Israel conflict, resulted in over $500 million lost by traders. Nearly 160,000 traders faced significant liquidations, with long positions being hit hardest. This turmoil highlights vulnerabilities in highly leveraged trading in the crypto space.
Finbold
Market Crash: How the Iran-Israel Clash Led to $500 Million in Crypto Losses

Market Crash Due to Geopolitical Tensions

The crash in the crypto market was exacerbated by escalating tensions as Iran launched a heavier attack against Israel. This incident triggered a significant wave of liquidations among crypto traders. Crypto platforms reported that a staggering 160,000 traders lost over $500 million within the last 24 hours.

Details of Liquidations

  • Long positions accounted for 86.5% of the liquidations.
  • Total liquidations reached $539.63 million.
  • A single Binance trader lost $12.66 million in a BTC/USDT position.
  • Bitcoin liquidations alone totaled $143.48 million.
  • Ethereum followed closely with $111.59 million lost.

Impact on Market Capitalization

The fallout from the crash erased almost $150 billion in market capitalization, dropping the total crypto market cap to a low of $2.065 trillion before recovering slightly. The panic stretched beyond cryptocurrency markets, affecting stocks and commodities alike.

Bitcoin Price Analysis and Future Outlook

As the crash unfolded, Bitcoin entered a downward trend, trading at $61,110 after dropping from over $63,000. Analysts predict potential growth as the market adjusts to these recent upheavals, yet caution remains due to ongoing geopolitical concerns.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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