The value of Bitcoin (BTC) fell below $65,000 on April 12, a steep decline from the peak of $71,000 earlier in the day, as a selloff hit the crypto and stock markets, sending some altcoins trading more than fell 15%. .
The decline reflected a broader sell-off across asset classes, amid heightened global economic uncertainties and geopolitical risks.
Bitcoin has recovered somewhat since the violent pullback and was trading around $67,300 at the time of writing, based on data from CryptoSlate.
Ethereum, the second-largest cryptocurrency by market cap, fell 12% to $3,100 before recouping some losses to close 8% lower at $3,244 at the time of writing.
Meanwhile, BNB and Solana (SOL) fell nearly 14% before recouping some losses. Both tokens, at the time of writing, are down around 12% in the past 24 hours – trading at $593 and $153 respectively.
Smaller cryptocurrencies suffered even steeper declines, with tokens like Cardano (ADA), Avalanche (AVAX), and Bitcoin Cash (BCH) posting losses ranging from 15% to 20%.
The crypto market downturn caused one of the largest leverage washouts of the month, wiping out approximately $850 million in leveraged derivatives positions, with CoinGlass facts This indicates that $770 million of these were long positions expecting price increases.
Traditional stock markets also suffered losses as investors feared an escalation of conflict in the Middle East following warnings from US officials about possible aggressive actions by Iran against Israel.
This uncertainty pushed investors towards safer assets, boosting government bonds and the US dollar. Meanwhile, the S&P 500 and Nasdaq 100 each fell about 1.7%. The gold price briefly rose to a record high of more than $2,400, and the oil price rose by 1%.
Ryze Labs commented on the day’s events and predicted continued volatility for cryptocurrencies in the near term due to the upcoming tax season. Despite the immediate market jitters, the company maintains a positive long-term view and anticipates that easing monetary policy and a slowdown in quantitative tightening could stabilize and boost the crypto sector.
As global markets navigate economic indicators and geopolitical tensions, the crypto sector remains particularly sensitive to such developments and is preparing for potential further swings as tax season and beyond approach.
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