Author: Dingdang, Odaily
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 setback. 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, over the past 24 hours, liquidations totaled $1.159 billion, with the majority being long liquidations amounting to $1.084 billion. By cryptocurrency, BTC liquidations were $458 million, and ETH liquidations were $287 million.
The market shifted from a rebound to a collapse overnight.
Escalation of Israel-Iran Situation: The Trigger for the Decline
This decline was not technically driven but triggered by a typical geopolitical sudden event.
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In contrast, the situation for Altcoins is not optimistic. Rui, an investment manager at Hashkey Capital, wrote that the liquidity of Altcoins has reached a freezing point. There are no buy and sell orders, and even good news cannot attract buyers. New coins drop within thirty seconds of listing, and everything turns 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 on-chain financial systems, allowing SEC-regulated entities to quickly launch on-chain products. If this policy is implemented, it would mean relaxing 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 capital relies more on institutional support. So, if even ETH needs institutional protection, what can other Altcoins hope for?
