Leading cryptocurrencies plunged on Thursday as reports of renewed hostilities between the U.S. and Iran spooked investors.
Crypto Market Goes ‘Neutral’
Bitcoin went downhill from $84,000 to an intraday low of $80,989, while Ethereum slipped to $2,372 amid a strong wave of selling. XRP and Dogecoin also recorded sharp declines.
Cryptocurrency-related stocks also fell, with Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closing down 5.00% and 6.09%, respectively.
Over $470 million was liquidated from the cryptocurrency market in the last 24 hours, with $434 million in bullish long positions alone wiped out, according to Coinglass data.
Bitcoin’s open interest fell 3.21% over the last 24 hours. Smart money sentiment, which refers to the collective outlook and capital allocation of institutional investors, turned "extremely bearish."
Cryptocurrency sentiment has flipped from “Greed” to “Neutral,” according to the Fear & Greed Index.
Top Gainers (24 Hours)
War Resumption Fears Drag Stocks Lower
Major stock indexes retraced sharply on Thursday. The S&P 500 pulled back 1.21% to close at 7,663.43, while the tech-focused Nasdaq Composite declined 2.6% to end at 26,008.86. The Dow Jones Industrial Average eked out a 0.02% gain to end at 52,867.98.
Investors were spooked over reports that the U.S. and Israel have drawn up plans for renewed strikes on Iran after the midterm elections.
President Donald Trump, meanwhile, said the U.S. is not actively negotiating with Iran, adding, “We are going to have something one way or the other that’ll happen fairly soon.
Bitcoin’s Correction to Deepen?
Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, said that Bitcoin is stuck in a “no man’s land,” and that a “deeper correction” wouldn’t be weird for the market.
According to Van De Pope, ideal long setups include a liquidity sweep below $80,000, potentially targeting $78,400-$79,700 area, or a bullish invalidation on a break above $82,900, which would target new yearly highs.
Rekt Capital, another well-known cryptocurrency researcher, noted Bitcoin’s failure to retest $83,400 as support after a daily close above it, causing a breakdown from the targeted $83,400-$87,000 range.
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