The cryptocurrency market experienced a downturn over the weekend in response to rising tensions between Iran and Israel, with Bitcoin’s value dropping to US$62,773 on Saturday, its lowest price this month, CoinGecko data shows.

This sharp decline was prompted by an Iranian drone strike on Israel, leading to a broad sell-off in digital assets.

The geopolitical unrest resulted in more than US$1.5 billion in long position liquidations on Friday and Saturday, according to data from Coinglass.

The market’s reaction to the Iranian drone attack, which was itself a retaliation to an Israeli operation in Syria, underscores the high sensitivity of cryptocurrency investments to global events.

While traditional financial markets reacted on Friday, the 24/7 nature of cryptocurrency trading meant that the impact was felt over the weekend.

Bitcoin, which had recently peaked at US$73,737 in mid-March, saw its value plummet with other major cryptocurrencies, including Ether, also incurring notable losses.

The downturn was intensified by the crypto market’s high leverage, particularly in derivative bets, leading to one of the largest liquidation events in recent months.

Bitcoin halving is due for a halving this month, an event that theoretically leads to price surges by halving the production of new Bitcoin.