The cryptocurrency market experienced volatility as tensions in Iran escalated, with Bitcoin briefly dropping to $63,000 and Ethereum touching $1,910 before recovering. A U.S. strike on Saturday led to approximately $300 million in long positions being liquidated, though the impact was contained, indicating reduced leverage. Some investors are shifting to tokenized gold and other 24-hour assets as a hedge.
The options market showed a mild reaction, with the one-day implied volatility briefly spiking to 93% but struggling to sustain above 60%. Following a similar incident last June, Bitcoin temporarily fell below $100,000 before rebounding and reaching a high of $123,000 in the subsequent weeks. Currently, there is notable buying interest in call options with strike prices of $74,000 and $75,000 for March, suggesting some investors are betting on a rebound next month.
Crypto Markets Remain Volatile Amid Iran Conflict Escalation
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