Crypto Chaos: Bitcoin Drops, Iran Strikes, Market Panic!

Bitcoin dropped 8%, dipped under $62,000, then bounced back.

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Other major cryptocurrencies also saw significant declines during the same period.

Ethereum (ETH) fell by 7% to just under $3,000.

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Binance Coin (BNB) and Solana (SOL) experienced drops of 9% and 12% respectively.

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The decentralized finance (DeFi) sector was particularly affected by the market turmoil.

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Liquidations and potential disruptions to protocols were caused by depressed prices.

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Ethena, an Ethereum project, saw scrutiny due to its method for maintaining USDe's price peg.

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Former BitMEX CEO Arthur Hayes suggested that declining dollar liquidity due to tax payments could have contributed to the market downturn.

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Market recovery commenced after Iran indicated the conclusion of its actions against Israel, though warning of further consequences if provoked.

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