Bitcoin's crash to $65k causes meltdown for alts

Bitcoin’s (BTC) value plummeted below $66,000 on April 12, a stark drop from its $71,000 peak earlier in the day, as a wave of selling hit the crypto and equities markets, causing some altcoins to fall more than 15% in a matter of minutes.

The decline mirrored a broader selloff across asset classes amid heightened global economic uncertainties and geopolitical risks.

Bitcoin has slightly recovered since the violent drawdown, trading at around $67,300 as of press time, based on CryptoSlate data.

Ethereum, the second-largest crypto by market capitalization, fell 12% to $3,100 before paring some losses to close 8% lower at $3244 as of press time.

Meanwhile, BNB and Solana (SOL) dropped almost 14% before recovering some losses. Both tokens were down roughly 12% over the past 24 hours as of press time — trading at $593 and $153, respectively.

Smaller cryptocurrencies faced even steeper declines, with tokens like Cardano (ADA), Avalanche (AVAX), and Bitcoin Cash (BCH) recording losses ranging from 15% to 20%.

The crypto market’s downturn triggered one of the largest leverage washouts of the month, erasing approximately $850 million in leveraged derivatives positions, with CoinGlass data indicating that $770 million of these were long positions expecting price increases.

Traditional stock markets also suffered losses as investors feared an escalation in Middle Eastern conflicts following warnings from US officials about potential aggressive actions by Iran against Israel.

This uncertainty drove investors toward safer assets, boosting Treasury bonds and the US dollar. Meanwhile, the S&P 500 and Nasdaq 100 each dropped about 1.7%. Gold prices briefly soared to an all-time high of over $2,400, and oil prices increased by 1%.

Ryze Labs commented on the day’s events, forecasting continued volatility for cryptocurrencies in the short term due to the upcoming tax season. Despite the immediate market jitters, the firm maintains a positive long-term view, anticipating that an easing monetary policy and a slowdown in quantitative tightening might stabilize and boost the crypto sector.

As global markets navigate through economic indicators and geopolitical tensions, the crypto sector remains particularly sensitive to such developments, preparing for possible further fluctuations as it approaches tax season and beyond.

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