The broad crypto market suffered its worst session in weeks as U.S. strikes on Iran triggered more than $1 billion in liquidations.
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CoinDesk 20 slides 3.1% as geopolitical turmoil rocks crypto
The broad crypto market suffered its worst session in weeks as U.S. strikes on Iran triggered more than $1 billion in liquidations.
The CoinDesk 20 Index fell 3.1% to 1,961.44 as U.S. strikes on Iran sparked more than $1 billion in crypto liquidations across centralized exchanges.
Coinglass data showed $897 million in long positions were liquidated in the 24 hours to 06:00 UTC, with Binance and OKX accounting for the majority of forced closures. The broader selloff accelerated after U.S. military action in the Hormuz Strait heightened risk aversion across global markets.
Bitcoin dropped to $72,887, its lowest level in six weeks, while ether slid below $2,000 to $1,984. XRP broke below the $1.30 support level that traders had defended for months, falling as low as $1.29. BlackRock's bitcoin ETF, IBIT, recorded $528 million in outflows, the second-largest daily withdrawal on record, according to data from the issuer.
The selloff compounds pressure from an upcoming U.S. Treasury operation that fund manager Michael Kramer of Mott Capital Management estimates could drain $150 billion in liquidity from the financial system between May 28 and June 5. Kramer warned that bitcoin, which he described as a leading liquidity indicator, could head "much lower" after breaking support near $75,000.
Stellar defies the downturn as altcoins bleed
Only one asset in the CoinDesk 20 traded higher. Stellar's XLM jumped 10.5%, while HBAR was the second-best performer at minus 1.7%. At the other end, NEAR Protocol plunged 12.2% and Bitcoin Cash dropped 12.1%, leading the laggards.
The dispersion reflects capital rotation out of higher-beta altcoins into relative outperformers, even as the broader market bleeds. Bitcoin's dominance rate ticked higher during the session, a pattern typically associated with risk-off positioning in crypto markets.
Macro headwinds compound crypto's pain
JPMorgan said in a note Wednesday that the pandemic-era "debasement trade" centered on bitcoin and gold is cooling, with recent outflows from both bitcoin and gold ETFs reflecting a broader pullback from macro hedges. The bank suggested investors may be getting ahead of a potential U.S.-Iran peace deal.
For traders, the key levels to watch are bitcoin's ability to hold above $70,000 and reclaim $75,000 as resistance. A failure to defend the current range could open the door to a move toward the $65,000 area, according to technical analysts monitoring the CME futures gap structure.
This article is for informational purposes only and does not constitute investment advice.
