Risk-off sentiment sparks massive liquidations while traders monitor key support levels
Bitcoin (BTC) fell to its lowest level in more than two weeks as rising geopolitical tensions in the Middle East and weakening investor sentiment pushed traders to reduce exposure to risk assets. The world’s largest cryptocurrency dropped as much as 2.9% to approximately $76,000 during Monday trading before recovering slightly to trade near the $77,000 level.
The broader cryptocurrency market also experienced heavy selling pressure, with Ethereum and Solana posting notable declines. According to market data from Coinglass, nearly $500 million in bullish crypto positions were liquidated within just 15 minutes during early Asia trading hours, while total bullish liquidations surpassed $800 million over the past 24 hours.
Analysts pointed to uncertainty surrounding the ongoing conflict involving the United States and Iran as a key factor behind the decline. Financial markets broadly experienced heightened volatility as traders weighed mixed signals regarding a potential diplomatic agreement that could impact oil flows through the Strait of Hormuz and global energy markets.
Investor demand for crypto exposure also weakened sharply. US-listed spot Bitcoin exchange-traded funds recorded more than $1 billion in outflows last week, marking the first weekly outflow of that magnitude since January.
Despite the broader market weakness, Strategy Inc., formerly known as MicroStrategy, disclosed that it purchased approximately $2 billion worth of Bitcoin over the past week, further expanding its position as the world’s largest corporate Bitcoin holder.
Market analysts believe Bitcoin’s near-term direction will depend on whether the cryptocurrency can maintain support near the $76,000 range, while a move back above $80,000 could signal improving investor confidence and reduced selling pressure.
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