BTC drops to $96,000, nearly $500 million liquidated, what is the reason?

The price of Bitcoin has fallen to $96,000, leading to nearly $500 million in liquidations in the market. One of the main causes of this decline is the rising geopolitical tensions, especially in the Middle East, which have caused instability in the cryptocurrency market. This has affected trading sentiment and reduced confidence in Bitcoin's resilience, despite previously high expectations for a price surge this fall.

The $500 million liquidation primarily comes from long positions, with $453 million of that being liquidated, while short positions accounted for only $73 million. This indicates that traders are facing significant challenges and there is a marked shift in market dynamics, diminishing Bitcoin's appeal in the short term.

Analysts suggest that the current downturn may not last long, as Bitcoin is still supported by various macroeconomic factors, but the geopolitical situation has created a rather bleak outlook for investors.