This morning, an unexpected "black swan" event disrupted the brief tranquility of the financial markets.
As news of Israel's airstrike on Iran spread, the cryptocurrency market suffered a severe blow. According to OKX quotes, BTC price dropped below $103,000, with a 24-hour decline of 3.3%; ETH, which had recently gained momentum, fell below $2,450, dropping by 9.2%; and SOL, which had risen due to ETF positive news, touched around $140, declining by 9.5%.
The derivatives market was in chaos. According to Coinglass data, the network liquidated $1.159 billion in the past 24 hours, with the majority being long position liquidations amounting to $1.084 billion. By cryptocurrency, BTC liquidations reached $458 million, and ETH liquidations were $287 million.
The market shifted from rebound to collapse overnight.
Israel-Iran Situation Escalates: The Trigger for the Decline
This decline was not technically driven but typical of a geopolitical sudden event.
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Market Focus: Where Will BTC Stop Falling? Can ETH Break Through?
Caroline Moren, co-founder of Orbit Markets, a crypto derivatives liquidity provider, analyzed: "Cryptocurrencies reacted negatively to the news of Israel's attack on Iran, consistent with major risk assets. We expect BTC to find technical support around $101,000, but in the short term, geopolitical news will continue to dominate price trends."
The Middle East situation remains highly uncertain, and risk assets are difficult to recover in the short term. However, ETH's counter-trend accumulation undoubtedly signals that: the market is still seeking certainty assets, and ETH may be emerging from the "Altcoin resonance".
In contrast, the situation for Altcoins is not optimistic. HashKey Capital investment manager Rui wrote: Altcoins' liquidity has reached a freezing point. There are no buy or sell orders, and even good news fails to attract buyers, with new coins dropping within thirty seconds of listing, everything turning into a downward trend.
However, there is some good news. Recently, SEC Chairman Paul Atkins stated that the SEC is developing an "innovation exemption" policy for DeFi platforms. Atkins said he has requested staff to study rule modifications to provide regulatory exemptions for the on-chain financial system, allowing entities under SEC jurisdiction to quickly launch on-chain products. If implemented, this policy would mean loosening DeFi regulation and directly benefit the expansion of the Ethereum ecosystem, enhancing ETH's intrinsic value.
However, this raises a key question: Does ETH's rise signal the return of the "Altcoin season"? The answer may not be optimistic. Currently, ETH's ability to attract funds relies more on institutional large-scale support. So, if even ETH needs institutional protection, what can other Altcoins expect?
