Bitcoin Plunges to $66K, Altcoins Tumble 10-15% on Ugly Day for Risk Assets

In the past month, the most significant wipe-out of leveraged derivative trades occurred due to a drawdown, resulting in the termination of around $850 million worth of such positions in various digital assets, as indicated by CoinGlass statistics.

During the U.S trading session, stock markets took a downturn due to increasing anxiety over potential escalation of conflicts in the Middle East. Simultaneously, American officials issued cautions that Iran might be planning a major assault against Israel.

Traders sought refuge in Treasury bonds and the U.S. dollar index (DXY) as they bought protective hedges, causing both to rise significantly. Meanwhile, the S&P500 and Nasdaq 100 indices in the United States dropped by 1.7% just before the market closed. Gold reached a new record high of over $2,400, but then gave back some of its gains. The price of oil also went up by 1%.

Ryze Labs, previously known as Sino Global Capital, warned investors in a recent statement that they may experience some short-term volatility in crypto assets leading up to tax season. However, the investment firm remains optimistic about the future, believing that easing monetary policies from policymakers could bring relief to the crypto asset class and support U.S. government debt rollovers in the long term.