If Bitcoin crashes to $64,000, the alternative market will crash
The value of Bitcoin (BTC) plummeted below $65,000 on April 12, from a high of $71,000 earlier in the day as a wave of selling hit the cryptocurrency and stock markets, sending some altcoins down more than 15% in a matter of minutes. That’s a big drop. .
The decline reflected widespread selling across asset classes amid heightened global economic uncertainty and geopolitical risks.
Bitcoin has recovered slightly after its violent decline and is trading around $67,300 at press time, according to CryptoSlate data.
Ethereum, the second-largest cryptocurrency by market capitalization, fell 12% to $3,100 and, after taking some losses, closed down 8% at $3,244 at press time.
Meanwhile, BNB and Solana (SOL) fell nearly 14% before recovering some of their losses. Both tokens have fallen about 12% over the past 24 hours at press time, trading at $593 and $153, respectively.
Smaller cryptocurrencies faced even steeper declines, with tokens such as Cardano (ADA), Avalanche (AVAX), and Bitcoin Cash (BCH) posting losses ranging from 15% to 20%.
The slump in cryptocurrency markets led to one of the biggest leverage losses this month, wiping out about $850 million from leveraged derivatives positions, according to CoinGlass data, $770 million of which were in anticipation of price increases. It was a buy position.
Traditional stock markets also suffered losses as investors feared an escalation in Middle East conflict following warnings from U.S. officials about a possible Iranian attack on Israel.
This uncertainty has driven investors to safer assets, which has pushed Treasury bonds and the U.S. dollar higher. Meanwhile, the S&P 500 and Nasdaq 100 each fell about 1.7%. Gold prices briefly surged above $2,400, a record high, and oil prices rose 1%.
Commenting on today’s event, Ryze Labs predicted continued volatility in cryptocurrencies in the near term due to the upcoming tax season. Despite the immediate market jitters, the company maintains a positive long-term outlook, predicting that loose monetary policy and a slowdown in quantitative tightening can stabilize and boost the cryptocurrency sector.
As global markets struggle with economic indicators and geopolitical tensions, the cryptocurrency sector is particularly sensitive to these developments and is bracing for further volatility that may occur as tax season approaches and beyond.
The post Alts Collapse After Bitcoin Crashes to $64,000 appeared first on CryptoSlate.
