Cryptocurrencies Drop Sharply amid Geopolitical Tensions, Bitcoin Leads Liquidations

Cryptocurrency markets have experienced notable declines recently, with altcoins like Dogecoin and Solana among the hardest hit. Bitcoin and Ethereum have shown relative resilience, though both have also fallen by around 3-6%, with Bitcoin trading below $106,200 and Ethereum near $2,650. The downturn is partly attributed to escalating geopolitical tensions following Israel's strikes on Iranian sites, which triggered a flight to safe-haven assets such as gold and the U.S. dollar. This risk-off sentiment has caused sharp liquidations in crypto markets, wiping out over $320 million in long positions in a short span, including a significant $201 million Binance long on Bitcoin. The broader market is seeing reduced enthusiasm for altcoins, with investors reallocating capital towards more established cryptocurrencies amidst concerns over traditional market influences like U.S. inflation data. Dogecoin, in particular, has been trapped in a volatile trading range with high volume but significant price drops, indicating market fatigue and uncertainty among traders.