In a turbulent market response, Bitcoin (BTC) saw a decline to $76,000 amid escalating tensions between the US and Iran. This drop, occurring during early Asian trading hours on Monday, marks a significant shift as the cryptocurrency hit three-week lows, erasing gains from earlier in May.
Over the past 24 hours, more than $607 million worth of long positions were liquidated, with Bitcoin long liquidations alone totaling $190 million. Analysts emphasize that the key support level at $76,000 must hold to prevent a further decline towards the $65,000 demand area.
Just days prior, Bitcoin reached a 13-week high of around $83,000 due to favorable market conditions, including strong ETF inflows. However, renewed threats from US President Donald Trump regarding Iran's peace negotiations have contributed to the current bearish sentiment, raising concerns among traders.
Additionally, the volatility extended to the oil market, where WTI crude prices surged above $103 before correcting, reflecting broader geopolitical anxieties.