Cryptocurrency Market: Nearly $1 Billion Lost

According to data provided by CoinGlass, the global cryptocurrency community has experienced one of the most significant turbulences since early March. The value of cryptocurrencies dropped to the extent that almost $963 million was lost in just a single day. This represents a substantial blow to the market, which had maintained a relatively stable level for some time.

The latest crisis is exceptional both in terms of the scale of losses and the sources of its origin. Analysts attribute the market downturn primarily to escalating tensions in the Middle East. Iran's attacks on Israel resulted in a sharp decline in the value of Bitcoin by over 8%. This situation had consequences for other cryptocurrencies as well, leading to a cascade of position liquidations.

Concerningly, the losses primarily affected long-term investors. According to CoinGlass data, long positions accounted for the majority of the $963 million lost. This indicates that even the most stable investments in cryptocurrencies are not immune to risk.

The largest liquidation order occurred on the Binance exchange. However, it's not the only platform where traders incurred losses. Exchanges such as OKX, Huobi, BitMEX, CinEX, and Bitfinex also witnessed significant position liquidations.

Although some altcoins, such as Dogecoin (DOGE) and Shiba Inu (SHIB), managed to briefly increase in value, the overall cryptocurrency market capitalization remains low.

In summary, the cryptocurrency market crisis, which resulted in the loss of nearly $1 billion in just one day, demonstrates that virtual currencies are susceptible to sudden changes and external factors that can significantly impact their value. If the situation in the Middle East does not improve and, in fact, worsens, there is a risk of further declines and greater losses in the cryptocurrency market.