Despite a traditional stock rally and rising military tensions in the Middle East, Bitcoin has stagnated over the past 24 hours, trading flat around $80,000.
Important points:
- Bitcoin ended the week flat at $80,200 as the market largely ignored the military conflict between the US and Iran.
- The S&P 500 index has risen 17.2% since March, adding $10 trillion in value as geopolitical concerns recede.
- Bitunix analysts say they expect a tug-of-war going forward and that the $78,000 breakdown could trigger a liquidation.
Clearing amount decreases amid consolidation
Bitcoin traded flat on Friday as global markets appeared to ignore the recent skirmish between the US military and Iran’s Islamic Revolutionary Guard Corps in the Strait of Hormuz. Similarly, the latest data showing that non-farm payrolls jumped by 115,000 in April failed to boost the cryptocurrency, which fluctuated between $80,200 and $79,200.
Stability halted the recent decline that erased gains from the beginning of the week, but Bitcoin’s 24-hour price action meant it was poised to end the week slightly higher. The company’s market capitalization was just under $1.6 trillion, up nearly 2% from seven days ago.
As expected, the flattening of price movements significantly reduced leveraged positions liquidated in 24 hours. In Bitcoin alone, $28.3 million in long bets were liquidated during this period, compared to $14.5 million in short bets. For context, approximately $91 million in overleveraged long positions disappeared in the past 24 hours, compared to $12 million in short positions. Overall, leveraged positions in the crypto economy wiped out $202 million, while longs accounted for $103 million.
The recent heavy fighting between the US and Iran marks a significant escalation in intensity compared to Monday’s skirmish, but its short duration has reinforced the general market view that neither side wants a full-scale conflict. Investors effectively called it a geopolitical bluff, as evidenced by energy markets. Brent crude oil and West Texas Intermediate (WTI) experienced a sudden spike, but the premium had evaporated by midday, leaving prices at $101 and $95 per barrel, respectively.
In a remarkable show of resilience, market fears of a full-blown regional conflict receded, fueling a historic rally and sending the S&P 500 index to a record close above 7,400. This 17.2% jump since March 30 represents a massive capital inflow. According to Kobeisi Letter, the index’s market capitalization has increased by $10 trillion in just 29 business days.
However, according to Bitcoin analysts, Bitcoin’s reversal over the past two days shows that the tug of war between bearish and bullish positioning continues.
“According to the liquidation heat map, significant liquidity is concentrated around the $78,000 zone, meaning that further liquidation pressure is likely below this area. At the same time, there is a build-up of thick short liquidity between $82,000 and $83,000, highlighting that the market remains in a pronounced tug-of-war,” analysts explained in a recent note.
