Bitcoin lost momentum after briefly climbing to $79,500, pulling back to around $78,000 as traders digested geopolitical risk and a wave of liquidations. According to the source material, bitcoin fell as low as $77,201 on April 23, marking its first 24-hour decline in several days and a drop of roughly 1.2%.
The retreat also cut into bitcoin’s market value. The report said its market capitalization slipped from a monthly high of $1.58 trillion to about $1.57 trillion, a reduction of nearly $10 billion. Although bitcoin briefly recovered above $78,500, it later moved into a consolidation phase near $78,000, suggesting that bullish momentum weakened after the recent surge.
Middle East “economic warfare” in focus
Investor sentiment remained closely tied to developments in the Middle East. The article noted that, while direct military confrontation had temporarily slowed, tensions had shifted toward maritime control in the Strait of Hormuz, where commercial vessels had reportedly been stranded for more than a month.
The source highlighted several developments unsettling markets, including the U.S. Navy’s seizure of an Iranian vessel shortly after Iran’s Revolutionary Guard forces took control of two ships. Some analysts fear that if pressure on Iranian port revenues continues, Tehran could escalate by targeting neighboring Gulf states. That backdrop has added a layer of uncertainty for risk assets, including cryptocurrencies.
Liquidations hit leveraged longs
Bitcoin’s roughly $1,000 intraday swing rippled through derivatives markets. The decline triggered about $35 million in long liquidations and roughly $23 million in short liquidations, according to the source. Across the broader crypto market, total liquidations reached $218 million, with overleveraged long traders accounting for $147 million of the losses.
Even so, the liquidation damage was described as lighter than in the previous session, when about $207 million had been wiped out. That suggests the market saw a notable reset in positioning, but not a full-scale panic event.
Interestingly, traditional financial markets appeared more restrained in their response. South Korea’s Kospi and France’s CAC 40 posted modest gains, while most major equity indexes were little changed. In that sense, bitcoin’s pullback appears to reflect a combination of crypto-specific positioning and geopolitical caution rather than a broad global market sell-off.