Bitcoin (BTC), Ethereum (ETH) and Altcoins Dropped Hard! What’s the Reason for the Drop? Here’s All You Need to Know!

Just when Bitcoin (BTC) and altcoins were recovering and starting to rise again, new declines occurred today. At this point, cryptocurrency markets triggered a flight from risky assets after Israel launched airstrikes on Iran and intensified regional conflicts, leading to sharp declines in Bitcoin, Ethereum (ETH), and altcoins. The cryptocurrency market took off after Israel launched airstrikes on Iran, The Block reported. An unnamed Israeli military official confirmed to local reporters that the strikes targeted Iranian nuclear and military infrastructure. Historically, risky assets like cryptocurrencies tend to decline following tensions in the Middle East. According to the data, Bitcoin fell more than 4% in the last 24 hours, falling below the $104,000 level. BTC then recovered and rose to $104,400 levels. This decline also had a negative impact on altcoins other than Bitcoin. The largest altcoin, Ethereum, fell by 10% to $2,500. Popular altcoins such as XRP, Solana (SOL), Dogecoin (DOGE), and Avalanche (AVAX) also followed BTC and ETH with declines between 6% and 15%. The biggest reason behind the decline in Bitcoin and altcoins, apart from geopolitical tensions, was the fact that the possibility of a FED rate cut has almost disappeared. The fact that the core CPI is still above expectations and the latest inflation data showing that producer prices are rising has almost eliminated the possibility of a rate cut in June. After this week’s data, the probability that the FED will leave interest rates unchanged in June has been priced in at 97.3%. This situation has also shown itself in a decline in cryptocurrency prices. According to Coinglass data, $1.14 billion worth of leveraged trades were liquidated in the last 24 hours. $1.04 billion of these were in long trades and $101 million in short trades. While 246,993 investors liquidated in the last 24 hours, the largest liquidation occurred in the BTC/USDT trading pair on Binance. *This is not investment advice. Continue Reading: Bitcoin (BTC), Ethereum (ETH) and Altcoins Dropped Hard! What’s the Reason for the Drop? Here’s All You Need to Know!

Source: BitcoinSistemi