Iran-Israel tensions provoke massive $860 million crypto sell-off
The recent escalation of tensions between Iran and Israel has sent shockwaves through the crypto market, with a significant sell-off totaling $860.82 million in assets. Fear of conflict has historically driven investors away from riskier assets like cryptocurrencies, leading to a sharp downturn in the crypto market cap by almost 5%.
QCP Capital, a prominent crypto firm, identified the negative impact of geopolitical instability on the market, pointing to the role of the ETH risk reversal indicator in the recent sell-off. Traders betting on a drop in Ethereum’s price saw their predictions come true as ETH plummeted by over 5% to $3100.
This fear-induced sell-off was further exacerbated by the plunging perpetual swap funding rates, reaching a record low of -40%. This strong bearish sentiment was also reflected in the forward curve, with the short-term outlook for cryptocurrency prices appearing grim.
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Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Cryptocurrency investments carry a high level of risk, and investors should conduct thorough research before making any decisions.
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