Bitcoin and other major cryptocurrencies have seen a significant drop of over 8.4%, with Bitcoin falling to $61,625, due to escalating geopolitical tensions in the Middle East, specifically Iran's attack on Israel. This event has led to a broad market sell-off, wiping out billions in market capitalization and impacting investor sentiment worldwide.

The overall crypto market also experienced a downturn, with Ethereum and Solana declining by 9.81% and 15.96% respectively. Over $2 billion worth of crypto was liquidated, highlighting the volatility of digital currencies during political unrest.

The Bitcoin halving event, coinciding with these geopolitical tensions, has added to the market's uncertainty. Bitcoin’s price fell to a low of $60,660 before a minor rebound, with analysts speculating that the halving might further impact Bitcoin’s price trajectory.

The DeFi sector was particularly affected, with price depressions and heightened liquidations. Ethereum-based project Ethena faced challenges as the market downturn tested its resilience.

Bitcoin's price drop led to the liquidation of $256 million worth of long positions. However, analysts suggest that such drops are typical in Bitcoin's trading cycles and may be necessary for its upward trend.

As the market seeks to stabilize, traders and investors remain cautious, anticipating further guidance from changes in U.S. economic indicators and Bitcoin futures contract trading. This period reflects the ongoing uncertainties facing the crypto market, driven by both political and economic factors.