Bitcoin Plunges to $74,000... $380 Million Forced Liquidation 'Shock' Amid US-Iran Clash

▲ Bitcoin (BTC)

Bitcoin (BTC) is plummeting amid rising geopolitical tensions, sending shockwaves throughout the market.

According to the cryptocurrency media outlet The Crypto Basic on April 20 (local time), Bitcoin fell by approximately 2%, dropping to around $74,190. This decline was directly triggered by escalating military tensions between the United States and Iran.

According to reports, armed clashes occurred during the US seizure of an Iranian vessel, and tensions rapidly escalated as Iran retaliated. In particular, with the possibility of a blockade of the Strait of Hormuz being discussed, concerns about global energy supply and the financial market as a whole grew, which immediately put downward pressure on the cryptocurrency market.

The market shock was even more pronounced in the derivatives market. In the past 24 hours, approximately $384.46 million worth of positions were liquidated in the cryptocurrency futures market. Of these, over $300 million were long positions, indicating that investors who bet on an increase were directly hit by the sharp decline.

Bitcoin and Ethereum accounted for the majority of the liquidations, with over $100 million in losses specifically from Bitcoin futures. This is interpreted as an instance where the short-term upward trend reversed faster than expected, revealing the market's excessive leverage structure.

Meanwhile, some analysts are also assessing that the strength of this cycle has weakened compared to the past. Compared to previous bull cycles, both returns and volatility have decreased, raising the possibility of a structural change.

Nevertheless, the long-term outlook remains optimistic. Anthony Scaramucci, founder of SkyBridge Capital, emphasized that Bitcoin is an asset that meets 'the conditions of money' based on its decentralization and limited supply structure. He cited increased institutional investment as a key driver, and assessed that the possibility of it rising to hundreds of thousands of dollars or more in the future is open.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*