Bitcoin took its share of the turbulence in the markets on Friday. The cryptocurrency fell below $68,000 seven days before the halving.
Bitcoin’s retreat is thought to be part of a wider sell-off in the markets. Increasing geopolitical risks with the growing tensions between Israel and Iran; While supporting the upward movements of US bonds and the dollar, it led to a decline in stocks. The S&P 500 index lost 1.6%, while the dollar index rose above 106 for the first time since November. Both the S&P 500 and Dow indices recorded the biggest declines of the year. Ounce of gold, which broke a record with $2,431 today, fell to $2,354.
Israel – Iran tensions shook the markets
Reports that Iran is preparing an attack on Israel in the next few days have reverberated widely in the markets. Al Arabiya reported that Iranian media is talking about an attack on government targets in Israel within the next 48 hours. Russia announced the successful test-firing of an intercontinental ballistic missile, while Israeli media reported that more than 50 missiles were fired at Israel from southern Lebanon. US media outlet Axios reported that Iran sent a message to the United States through Arab countries. According to the report, Iran asked the US to stay away from the conflicts between Israel and Iran, warning that otherwise US forces in the region would be under attack.
Bitcoin price gap closes on CME
Bitcoin’s drop to $65,086 helped fill the price gap at $65,535 on the CME. The price gap refers to the price difference between Friday’s close and Monday’s open on Bitcoin contracts on the CME. The CME exchange is closed on weekends, but Bitcoin is open for trading 24/7. This creates a large gap between the opening and closing price on the CME when the CME is closed, especially when there is a large price movement. To date, 28 out of 30 price gaps on daily candles have subsequently closed. This suggests that Bitcoin tends to fall back into price gaps.
$400 million position liquidated
On the other hand, sharp price movements led to the loss of $400 million of leveraged positions. According to Coinglass data, the number of users whose positions have been liquidated in the last 24 hours is over 160 thousand.
Bitcoin is trading at $66,899 at the time of writing.