Written by: Dingdang, Odaily Planet Daily
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 market data, BTC price dropped below $103,000, with a 24-hour decline of 3.3%; ETH, which had recently gained momentum, fell below $2,450, with a decline of 9.2%; and SOL, which had risen due to ETF positive news, touched around $140, with a decline of 9.5%.
The derivatives market was in chaos. According to Coinglass data, over the past 24 hours, the total liquidation reached $1.159 billion, with the majority being long position liquidations amounting to $1.084 billion. In terms of cryptocurrency distribution, BTC liquidation was $458 million, and ETH liquidation was $287 million.
The market shifted from rebound to collapse overnight.
Escalation of Israel-Iran Situation: The Trigger for the Decline
This decline was not technically driven but typical of a geopolitical sudden event.
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The Middle East situation still has high uncertainty, and risk assets are difficult to recover in the short term. However, ETH's counter-trend accumulation undoubtedly releases a signal: the market is still seeking certainty assets, and ETH may be emerging from the "Altcoin resonance".
In contrast, the situation of Altcoins is not optimistic. Rui, an investment manager at Hashkey Capital, wrote that the liquidity of Altcoins has reached its freezing point. There are no buy or sell orders, and even good news cannot 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 SEC-regulated entities 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 also raises a key question: Does ETH's rise herald 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?
