cryptocurrency
The effect of increasing tension between US and Iran is now visible on the crypto market as well. On Monday, May 18, the price of Bitcoin, the world’s largest cryptocurrency, fell to its lowest level in two weeks. Investors started staying away from risky investments, due to which huge selling was seen in the market.
The price of Bitcoin fell to $76,711, its lowest level since May 1. However, there was some recovery later. Along with Bitcoin, a decline was also recorded in other big cryptocurrencies like Ether and Solana.
$500 million wiped out in 15 minutes!
According to Bloomberg report, Coinglass data revealed that during the opening of Asian markets, bullish deals worth about $ 500 million were lost in just 15 minutes. This means that investors who invested money in the hope of a boom suffered huge losses. Market experts say that there is an atmosphere of fear among investors due to increasing US-Iran tension. For this reason people are withdrawing money from high risk assets. This has also affected Bitcoin ETFs. Last week, more than $1 billion was withdrawn from spot Bitcoin ETFs listed in the US, which was seen for the first time since January.
Why did it decline so much?
Crude oil prices rose on Monday, while Asian stock markets saw a decline. The ongoing tension regarding the Strait of Hormuz has also increased the concern of investors. This sea route is considered very important for the world. Meanwhile, US President Donald Trump said that Iran has very little time left for an agreement. After his statement the pressure in the market increased further. When Bitcoin went below the important support level of $77,800, the selling intensified. According to Coinglass data, long positions worth about $550 million were wiped out in a few hours.
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