Bitcoin slumps to a two-week low as Iran war builds pressure on cryptocurrency

Bitcoin has fallen to its lowest level in over two weeks, putting pressure on the digital currency. This comes as traders reduce their holdings due to widespread macro threats resulting from the US-Iran war.

Before reducing some losses, the original cryptocurrency dropped as low as $76,711 on Monday, the lowest since May 1. Ether and Solana were among the other tokens that saw a decline.

Also Read: China’s economy slows sharply as investment resumes declines

According to Bloomberg, who quoted Coinglass, early Asian trade on Monday witnessed roughly $500 million in liquidations of bullish bets across all cryptocurrencies, which caused Bitcoin's price to plummet.

The uncertainty surrounding the US conflict with Iran has put pressure on riskier assets, which has affected the token in recent days. Over $1 billion was taken out of US-listed spot Bitcoin exchange-traded funds last week.

Monday saw an increase in oil prices, a rise in bond yields, and a fall in Asian stocks. The unfavourable opinion coincided with the failure to reopen the Strait of Hormuz, a vital conduit for trade. The "clock is ticking" for Iran to reach an agreement, according to President Donald Trump.

Liquidations of Bitcoin occurred after the cryptocurrency dropped below a crucial support level at about $77,800. According to Bloomberg, bullish trades worth almost $550 million were unwound in Singapore between 6:30 and 10:30 in the morning.