Bitcoin plummeted rapidly

According to Reuters, bitcoin price decreased 7.9% to 61,842 USD, a loss of 5,308 USD compared to the previous closing session. Within a month, the world's largest virtual currency dropped 16.2% from its yearly high of 73,794 USD (March 14).

Not only bitcoin, the prices of other virtual currencies recorded sharp drops in the past 24 hours, including ether down 7% to below 3,000 USD, BNB down 9% and solana down 12%.

The decentralized finance (DeFi) sector has been hit hard by market chaos and the effects of political conflict.

Currently, it is not possible to clearly state the cause of the sharp decline in the virtual currency market on April 13. But according to Arthur Hayes, former CEO of BitMEX, USD liquidity will decrease before the US tax payment is due on April 15. Low liquidity affects market prices.

Bitcoin prices also fell in response to the escalating conflict between Israel and Iran, especially when Iran launched drone and missile attacks against Israel. The Iranian government announced this was an act of retaliation for an air strike on the Iranian consulate in Damascus, Syria, which they attributed to Israel.

Before witnessing the decrease, bitcoin had a strong price increase from 34,000 USD (October 2023) to more than 73,000 USD (March 14, 2024). The cryptocurrency surged 50% after the US Securities and Exchange Commission approved 11 bitcoin spot exchange-traded funds earlier this year.

Marvin Fry

Update 14 April 2024