The cryptocurrency market continues its decline, led by Bitcoin. This drop follows geopolitical tensions linked to US President Donald Trump and Iran.
Yesterday, US President Donald Trump threatened to attack Iran’s energy infrastructure if Iran did not reopen the Strait of Hormuz within 48 hours. These statements by Trump caused a decline in both Bitcoin (BTC), altcoins, and gold.
Gold prices took a sharp hit, falling below $4,200 and recording their biggest weekly drop in over 40 years. This decline came as the conflict between the US, Israel, and Iran entered its fifth week, shaking investors across global markets.
Normally, gold prices rise during periods of geopolitical crisis like this. However, the opposite is happening this time. Even as the conflict between the US and Iran escalates, gold prices remain under pressure and are falling.
According to analysts, one of the main reasons for this is the rise in bond yields. The US 10-year Treasury yield has increased sharply in recent weeks, rising to approximately 4.40%. Analysts say that higher yields make interest-bearing assets more attractive, reducing demand for gold.
User X, named Covey Letter, stated in their post that “gold prices have fallen by approximately 22% from their peak and have officially entered a bear market.”
Bitcoin fell from around $71,000 to below $68,000 following Trump’s statements. With this drop, BTC also fell below the critical $69,000 level, and analysts expect this level to now act as resistance. The next support level is seen as $65,000.
According to Coinglass data, $393.3 million worth of leveraged positions were liquidated in the last 24 hours. Of this amount, $307.1 million consisted of long positions and $86.2 million of short positions.
In the last 24 hours, 173,371 investors were liquidated, with the largest liquidation occurring on Binance’s XAU/USDT trading pair.
*This is not investment advice.