Crypto markets tumble amid Middle East tensions, wiping $1.15 billion in liquidation

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • Market sentiment sours; conflict in the Middle East escalates, with reports suggesting Iran says it will respond "harshly" against Israel.

  • Asian equities and cryptocurrency markets traded in the red on Friday as geopolitical risk intensified.

  • CoinGlass data shows that over $1.15 billion in leveraged positions were liquidated across crypto markets in the past 24 hours.

Rising geopolitical tensions in the Middle East have triggered a sharp decline in risk assets, with cryptocurrency markets facing significant losses. The Kobesissi Letter reports suggesting Iran says it will respond "harshly" against Israel. These rising tensions have brought a gloomy market mood for investors, triggering the liquidation of over $1.15 billion in the cryptocurrency market, as well as the Asian equities market, which followed suit as geopolitical risk intensified.

Risk aversion increases as Middle East conflict escalates

The cryptocurrency markets continued to trade in the red on Friday, with Bitcoin (BTC) falling below $103,000 during the early Asian trading session. Major altcoins, such as Ethereum (ETH), Ripple (XRP), and Solana (SOL), among others, followed the downward trend, crashing sharply that day.

The rising conflict in the Middle East fueled this correction. According to the Kobeissi Letter report on Friday, Iran says it will respond "harshly" against Israel and the US following tonight's attacks. These ongoing geopolitical risks have triggered risk-off flows in the market, which do not bode well for riskier assets.

https://twitter.com/KobeissiLetter/status/1933358291926855865

The Asian markets also tumble on this news, as major indexes trade down on Friday, as shown in the graph below. However, safer assets like Gold continue to set new intraday highs, with XAU/USD nearing $3,444 following these headlines.

Asian stock indexes chart.

Asian stock indexes chart.

The effects of rising geopolitical tensions have triggered a wave of liquidation in the cryptocurrency markets. According to the CoinGlass Liquidation Map chart, a total of 249,178 traders were liquidated in the last 24 hours, resulting in a total liquidation value of $1.15 billion. The largest single liquidation order occurred on Binance, involving BTCUSDT, valued at $201.31 million.

Bitcoin saw over $448 million in liquidation, while Ethereum saw $288.40 million. Huge liquidations like this could spark Fear, Uncertainty and Doubt (FUD) among investors and cause a rise in selling pressure, leading to further price declines.

Liquidation Heatmap chart. Source: Coinglass

Liquidation Heatmap chart. Source: Coinglass

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Bitcoin Climbs to $111.5K as Altcoins Struggle Ahead of Payroll ReportBitcoin saw a modest rise on Friday, buoyed by gains across risk-sensitive markets as investors awaited the release of U.S. nonfarm payrolls data.
Author  Mitrade
Sept 05, Fri
Bitcoin saw a modest rise on Friday, buoyed by gains across risk-sensitive markets as investors awaited the release of U.S. nonfarm payrolls data.
placeholder
Bitcoin Slides to $111K Ahead of PCE Inflation Data, Faces Monthly DeclineBitcoin experienced volatile trading on Friday, sliding close to $111,000 as investors awaited critical U.S.
Author  Mitrade
Aug 29, Fri
Bitcoin experienced volatile trading on Friday, sliding close to $111,000 as investors awaited critical U.S.
placeholder
Bitcoin Dips Below $113K Near Six-Week Low Despite Federal Reserve Cut ExpectationsBitcoin dipped beneath the $113,000 mark on Monday, wiping out the strong rally sparked by Federal Reserve Chair Jerome Powell’s dovish comments.
Author  Mitrade
Aug 25, Mon
Bitcoin dipped beneath the $113,000 mark on Monday, wiping out the strong rally sparked by Federal Reserve Chair Jerome Powell’s dovish comments.
placeholder
Bitcoin Dips to Two-Week Low Around $113K Ahead of Fed Jackson Hole EventBitcoin continued its downward trajectory on Wednesday, hitting a two-week low as investors trimmed their positions ahead of the Federal Reserve’s upcoming Jackson Hole symposium.
Author  Mitrade
Aug 20, Wed
Bitcoin continued its downward trajectory on Wednesday, hitting a two-week low as investors trimmed their positions ahead of the Federal Reserve’s upcoming Jackson Hole symposium.
placeholder
Bitcoin Falls Below $116,000 Amid Growing Macro UncertaintyBitcoin slid below the 116,000 mark on Monday, retreating sharply from its record highs achieved last week.
Author  Mitrade
Aug 18, Mon
Bitcoin slid below the 116,000 mark on Monday, retreating sharply from its record highs achieved last week.
Real-time Quote