The value of Bitcoin (BTC) dropped below $65,000 on April 12, a significant decline from its earlier peak of $71,000. This sudden drop was part of a larger selloff that affected both the crypto and equities markets, leading to some altcoins falling more than 15% in just a few minutes.
The market turmoil was attributed to increased global economic uncertainty and geopolitical risks, causing investors to sell off their assets. Despite the initial crash, Bitcoin has since recovered slightly and was trading at around $67,300 at the time of writing.
Other cryptocurrencies also experienced losses, with Ethereum dropping 12% to $3,100 before partially recovering to $3,244. BNB and Solana (SOL) also saw declines of nearly 14% before bouncing back. Cardano (ADA), Avalanche (AVAX), and Bitcoin Cash (BCH) recorded losses ranging from 15% to 20%.
The market downturn resulted in a significant liquidation of leveraged derivatives positions, wiping out around $850 million, according to CoinGlass data. Long positions expecting price increases accounted for $770 million of these liquidations.
In addition to the crypto market slump, traditional stock markets also suffered losses due to escalating tensions in the Middle East. Investors turned to safer assets, driving up Treasury bonds and the US dollar while causing drops in the S&P 500 and Nasdaq 100 indices.
Despite the day’s events, Ryze Labs remains optimistic about the long-term outlook for cryptocurrencies, citing expectations of easing monetary policies. As global markets grapple with economic indicators and geopolitical tensions, the crypto sector is likely to experience continued volatility in the short term as it navigates through tax season and beyond.
