Iran’s attack on Israel caused a $962.40 million crypto market crash.

On April 13, the cryptocurrency market witnessed a sharp decline with Bitcoin and other digital currencies dropping nearly 10%.

This decline was triggered by heightened geopolitical tensions in the Middle East, particularly Iran's attacks on Israel.

Iran's attack has slowed down the cryptocurrency market

The crypto market experienced a major price crash, with several altcoins falling by double digits in response to Iran's actions. Bitcoin, for example, saw a $6,000 drop within minutes of the attack, as the major digital asset fell from $68,000 to $60,800 before rebounding to $64,400 at the time.

Similarly, Ethereum dropped from $3,200 to $2,800 before recovering to $3,000. Other assets such as BNB, Solana and Dogecoin have also seen declines of 5%, 8% and 10% in the last 24 hours.

These developments resulted in heavy losses for traders. According to data from Coinglass, approximately $962.40 million was lost, with a loss of $771.76 million from senior officials. In comparison, short traders lost $199.63 million due to the market decline.

Additionally, the DFI sector saw more than $120 million in liquidity, the highest point of liquidity this year, according to Parsec data.

A QCP Capital analyst exposed the full impact of rapid risk-to-risk reactions by playing the spread selling price in Bitcoin as a weekend proxy macro hedge. The company pointed out that this situation creates an opportunity for traders to buy the dip, citing historical profitability in such situations during major geopolitical conflicts.

Read More: Bitcoin Price Prediction 2024/2025/2030

Meanwhile, Julio Moreno, head of research at CryptoQuant, said the sell-off would reset traders' unrealized profits to zero, which typically signals the bottom of a bull market.

“After today's selloff, traders' unrealized profit (purple area) is the lowest since early February (10%). Moreover, the price is close to the $58,000 realized from the dealer,” Moreno added.

Tensions remain high in the Middle East, with Iran warning of further strikes if Israel retaliates over drone strikes. Notably, the heavily sanctioned country said it had taken the matter to a conclusion but warned that Israel would respond more strongly if it made another “mistake”.

“Iran's military action is a response to the Zionist regime's attack on our diplomatic post in Damascus. The case can be considered completed. However, if the Israeli regime makes another mistake, Iran's response will be severe. This is a conflict between Iran and the rogue Israeli regime, and America must stay out of it!” He wrote to the Permanent Mission of the Islamic Republic of Iran to the United Nations.