[Cryptocurrency market plunges $430 billion in 48 hours of fear]
Iran’s unprecedented attack on Israel has wiped out $430 billion in market value from the cryptocurrency market since April 12. Traders lost more than $2 billion in liquidations during the market turmoil, with Bitcoin (BTC) alone losing $500 million.
In fact, signals of this market collapse emerged the day before the Iranian airstrike. Finbold reported on April 13 that the market quickly collapsed by $150 billion in 24 hours, with liquidations approaching $1 billion at the time, before news of an escalation in the war with Iran became public.
Crypto markets were further hit by follow-up reports on Saturday night, with panic selling spreading. According to TradingView data, the total cryptocurrency market capitalization index fell by $42.911 billion, or 17%, in the 48 hours before the attack.
The index currently has a market capitalization of $2.258 trillion, recovering from a low of $2.098 trillion. Geopolitical tensions, such as war, have a profound impact on Bitcoin and other risk assets.
Cryptocurrency liquidations in the derivatives market have now reached $961.25 million, according to CoinGlass data, adding to previously reported liquidations of nearly $1 billion.
Bitcoin and Ethereum suffered the most losses during the incident, with Bitcoin traders losing over $500 million in 48 hours. The largest single liquidation occurred on Binance’s BTC/USDT trading pair, with a loss of $8.46 million.
Gold cryptocurrencies like Pax Gold (PAXG) were trading as high as $2,855 during the market crash and are currently at $2,433 per ounce, while TradingView’s Gold Index is at $2,343 per ounce, $100 below PAXG’s current rate.
The main reaction this time is panic, uncertainty and doubt, and with eyes focused on the war situation in Gaza, the next developments will influence the direction of the market in the coming days.
