Bitcoin plummeted to $ 98,200 in a flash

Today, on June 23, the bitcoin price BTC $101,230.11 Bitcoin -1.47% Market capitalization $2.01 trillion VOL. 24 hours $2.91 billion dropped sharply to $ 98,200 in a flash. Amid the decline, the daily volume of liquidations in the crypto market exceeded $ 650 million, which is one of the highest figures this year. According to analytical platforms, more than 185,000 traders, most of whom held long positions, were affected by the wave of liquidations.

The drop in bitcoin occurred amid a deteriorating geopolitical situation in the Middle East. In particular, market participants reacted to the news of a possible blockade of the Strait of Hormuz by the Iranian authorities. This strait is a strategic route for transporting approximately 20% of the world’s oil, and its potential blockage could lead to higher energy prices and accelerated inflation, particularly in the United States.

It is worth noting that the day before, bitcoin had already recorded a drop below $ 101,000, but the trend intensified the next day. After the night’s low, the price partially recovered and at the time of writing was just under $ 102,000. The correction also affected other cryptocurrencies, including the major altcoins.

In addition to the sharp decline in value, the market saw a significant increase in the fear and greed index, which lost six points in just one day and approached the «red» zone. This indicates a generalized tension among investors and traders amid unfavorable macroeconomic conditions and geopolitical risks.

Analysts attribute the current downturn not only to tensions in the Middle East, but also to the general correlation between cryptocurrencies and stock markets, which are sensitive to any significant news. The prospect of further changes depends on the development of the situation with the Strait of Hormuz and global oil prices.