The bearish trend returned to the cryptocurrency market last Friday.
The drawdown was moderate, but already on the night of Sunday, April 14, Bitcoin (BTC) fell to its lowest level since March 19. It found the bottom below $62,000. The day before, the largest digital currency began to recover after collapsing to a monthly low.
The BTC rate strengthened to $64,425. Ether (ETH) fell to $2,878 on Sunday night, and only during the day was it able to return to values above $3,000.
The market decline was a reaction of investors to the worsening Middle East crisis, according to Block Research analysts.
According to Coinglass, exchanges canceled positions worth $955.47 million per day. The largest liquidation was observed on OKX and Binance – $411.09 million and $360.85 million, respectively.
Santiment believes that the fall of Bitcoin and other virtual currencies was caused not only by geopolitical tensions. Another factor that triggered the outflow of capital from the cryptosphere was the return of inflation fears to the American market.
Rising consumer prices and weakening activity in the technology sector led to a reallocation of capital in favor of precious metals and Treasury bonds.
