Why is Bitcoin falling? As Iran launched a drone attack on Israel, the cryptocurrencies saw a major dump. The parent coin Bitcoin dropped by around 10%. The alt-coins followed the downward trend dropping by 30-60%.
Bitcoin broke its major support of $65000 and went below $62000. The next important support of Bitcoin is $59,000. If Bitcoin couldn’t sustain the support the of $59,000, it may dump hard up to $52,000.
Why is Bitcoin Falling Today?
There are mainly two reasons for the crypto-dump – Bitcoin Halving and Iran-Israel war.
Bitcoin Halving 2024
On of the important reason that cause bitcoin and cryptocurrencies to bleed is the bitcoin’s halving. The bitcoins next halving is happening in April-2024.
Looking at the history of Halving Events of bitcoin, it can be observed that bitcoin sees a major correction just before the next halving. The correction may be seen before a couple of weeks of the halving event and it may prolong up to a month or two after the event.
Actually, the correction is from the big players in the crypto-market. They want to book their profits before the halving event and sell their bitcoins. When the Bitcoin falls, the small retail investor panic sell their cryptocurrencies. Further, those holding futures trades get liquidated.
Due to this cascading effect, the overall crypto-market falls down. When the bitcoin is in the buying range, the big whales again buy the bitcoin, now at cheap prices. This process is repeated. Small investors need to understand this.
Iran-Israel War like situation
The geopolitical tensions are growing amid war like situation between Iran and Israel. This is impacting the crypto-world as well. The bitcoin dumped hard following Iran’s attack on Israel.
The halving correction of bitcoin and other cryptocurrencies turned into a dump following the war news. It caused panic in the market and almost all crypto turned into red
In the past 24 hours, around 245525 traders liquidated and kicked out of the market. The total liquidations valued at over $936 million. This is big!
The largest single liquidation order happened on the Binance Exchange amounting to $8.46 million in BTC/USDT pair. Wow!
What to do now?
It is better to avoid trade, both in spot and futures, for few days till the situation is clear. If you have some reserved funds, you can consider buying, spot only, in piece-meals.
However, if you have fully invested, just survive. Hold your spot positions and do not sell in panic. The market will recover sooner or later.
For future traders, it is better to stay from the market altogether. Do not trade. You may lose all your money in futures trading.