Cryptocurrencies fell sharply on Thursday as ongoing U.S. military strikes on Iran entered their 13th day, heightening market anxiety and reducing risk appetite. Bitcoin slipped to approximately $64,000, while Ethereum dropped to around $1,800, reversing earlier weekly gains. XRP and Dogecoin also experienced declines. According to Coinglass data, over $250 million was liquidated from the cryptocurrency market within the last 24 hours, with $188 million in bullish long positions alone wiped out.
Key Details
The broader market also faced pressure, with the Dow Jones Industrial Average declining by 506.93 points, or 0.97%, to close at 51,711.65. The S&P 500 fell 1.21% to 7,408.30, and the Nasdaq Composite lost 2.15%, ending at 25,137.69. The downturn followed disappointing earnings from technology companies, which contributed to a risk-off sentiment across various asset classes.
Background
Market analysts noted that Bitcoin's Sharpe ratio has fallen into negative territory, indicating a potential entry point for long-term investors. Ali Martinez, a cryptocurrency analyst, highlighted that previous instances of such declines have marked significant market bottoms. Meanwhile, trader Ted Pillows pointed out that Bitcoin trading below its 200-week EMA historically signals a long-term accumulation zone. He suggested that if the traditional four-year cycle holds, the market bottom could form in the fourth quarter.
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The ongoing geopolitical tensions are likely to weigh on both cryptocurrency and equity markets, particularly impacting sectors sensitive to risk sentiment. Investors will closely monitor developments in the U.S.-Iran conflict, which could further influence market volatility. Watch for updates on military actions or negotiations that may arise in the coming days.