The cryptocurrency market was shaken by geopolitical news in the early morning hours of February 28. The first information about Israel’s military operation against Iran led to a sharp sales wave in digital assets in a short time. As the instant risk aversion trend became evident in the markets, long positions worth over $100 million were liquidated within minutes and the Bitcoin price fell to the level of $63,644.
Sharp and Widespread Decline in Crypto Markets
The retreat in the markets was rapid and comprehensive. Bitcoin was traded at $63,644, losing 2.84 percent in value in the one-hour period. In this process, the $65,000 support, which was previously protected for two days, was also broken downwards.
In Ethereum, the decline was more significant at 3.01 percent and the price dropped to $ 1,857. Solana decreased by 2.45 percent in the same period, trading at $78.78, while XRP decreased by 2.29 percent and traded at $1.31. There were also losses of 2.38 percent in Dogecoin and Cardano prices.
While BNB dropped by 2.14 percent to $598.49, the CoinMarketCap 20 Index dropped to $131.80 with a loss of 2.34 percent on an hourly basis. Among the top ten cryptocurrencies by market cap, only stablecoins Tether and USDC remained unchanged in price; In both cases, the 1 dollar level was maintained. During this period, investors’ search for a safe haven came to the fore.
TRON, on the other hand, stood out from the others and traded at $ 0.2820, with a decrease of only 0.14 percent. According to analysts, this move by TRON reflects the low market sensitivity observed in the past.
Geopolitical Trigger and Market Mechanism
Israel’s alleged military operation against Iran has created a serious environment of uncertainty in the crypto markets, which already have a cautious outlook. The cryptocurrency market is known for its sensitivity to the developments and conflict environment in the Middle East. In similar events, risky assets and the broad market, especially Bitcoin, witness sharp price movements in the first minutes. Sudden liquidation processes of leveraged positions play a decisive role in these movements.
The liquidation of a $100 million long position in the first fifteen minutes clearly demonstrated the rapid reaction of the market dynamics. While the acceleration of compulsory sales increased the price decline, the decrease from $ 65,500 to $ 64,000 in a short time with new liquidations reveals that the market has entered a chain liquidation process.
It was observed that the decreases in question were largely due to the sudden news flow and that automatic liquidations were effective rather than a directional long-term sales movement in the market.
Following the initial news flow, price movements in liquid markets, including Bitcoin, changed rapidly. While the exit from risky assets was at the forefront, it was determined that the demand for stablecoins increased momentarily.
