Leading cryptocurrencies fell sharply on Thursday as ongoing U.S. military strikes against Iran dampened investor appetite for risk assets across global markets.
Bitcoin (CRYPTO: BTC) dropped 1.51% to $64,953.64, pulling back into the mid-$64,000 range and reversing gains made earlier in the week during what had been a tentative recovery.
Ethereum (CRYPTO: ETH) declined 3.13% to $1,871.30, falling back toward the $1,800 level as selling pressure mounted across the broader digital asset space.
XRP (CRYPTO: XRP) fell 2.80% to $1.10, while Dogecoin (CRYPTO: DOGE) suffered the steepest losses among major tokens, dropping 5.02% to $0.06921 during the same period.
Solana (CRYPTO: SOL) also declined 2.87% to $75.89, reflecting broad-based weakness that left few major cryptocurrencies unaffected by the market downturn.
Cryptocurrency-related equities suffered alongside digital assets, with Strategy Inc. (NASDAQ: MSTR) and Bitmine Immersion Technologies Inc. (NYSE: BMNR) closing down 6.38% and 6.48%, respectively.
Over $250 million was liquidated from the cryptocurrency market in the last 24 hours, with $188 million in bullish long positions alone wiped out, according to Coinglass data.
Bitcoin’s open interest fell 2.85% over the same period, a signal that traders were exiting long positions rather than new sellers actively driving prices lower.
The global cryptocurrency market capitalization stood at $2.25 trillion following a dip of 0.59% over the last 24 hours, as geopolitical uncertainty continued to weigh on sentiment.
U.S. strikes on Iran entered their 13th consecutive day on Thursday, while Yemen’s Iran-backed Houthi militia announced a maritime embargo on Saudi Arabia, raising fresh concerns about oil exports transiting the Red Sea.
Traditional equity markets also declined, with the Dow Jones Industrial Average falling 506.93 points, or 0.97%, to close at 51,711.65, while the S&P 500 slid 1.21% to 7,408.30.
The tech-heavy Nasdaq Composite lost 2.15% to close at 25,137.69, underscoring the broad risk-off sentiment that dragged both crypto and equities lower throughout the session.
Despite the negative price action, some analysts argued that current conditions may represent a long-term buying opportunity for investors willing to absorb near-term volatility.
Cryptocurrency analyst Ali Martinez noted that Bitcoin’s Sharpe ratio has dropped to negative territory, creating what he described as an “asymmetric” entry point for long-term investors looking to accumulate at depressed levels.
“Past instances where the ratio compressed to these levels, such as during the 2015, 2019, and 2022 bear market bottoms, marked final capitulation phases,” Martinez said, suggesting historical precedent could favor buyers at current prices.
Prominent cryptocurrency analyst Michaël van de Poppe maintained that Ethereum’s $2,500 price target remains intact, while acknowledging that the latest correction “isn’t great for the markets.”
