Geopolitical Tensions and Weak US Jobs Data Erase Over $300 Million from Crypto Market in a Day

The global cryptocurrency market capitalization briefly fell to approximately $2.33 trillion, a 3.4% drop in a single day, primarily impacted by geopolitical tensions and weaker-than-expected US jobs data. Iranian officials reiterated their “no compromise” stance, exacerbating market concerns about the escalation of regional conflicts and triggering risk-off sentiment among investors.

At the same time, the latest US non-farm payroll data fell short of market expectations, further diminishing the attractiveness of risk assets and prompting a large number of short-term traders to liquidate positions.

Major crypto assets generally declined, with both Bitcoin and Ethereum experiencing significant selling pressure. Data shows that only investors who bought Bitcoin in the past 1 to 4 weeks are currently in a profitable range, with an average cost of around $68,000, indicating that some market participants are choosing to take profits rather than continue to add to their positions. This correction is not a structural collapse but a short-term correction driven by macro sentiment. Over $300 million in leveraged positions were forcibly liquidated, reflecting the market's vulnerability in the face of uncertainty. If selling pressure persists, Bitcoin may test the key support level of $65,000; conversely, if geopolitical risks ease and economic data strengthens, the market is expected to stabilize and rebound. Historical experience shows that sharp liquidation waves are often followed by liquidity recovery and sentiment repair. Currently, signals such as reduced net inflows into exchanges, Bitcoin prices trending sideways, and a cooling of market panic are observed, potentially indicating that the correction is nearing its end. The long-term trend still depends on the progress of technology adoption and the overall stability of the macro environment.