Brent Crude Hits $112 - Over $1B in Leveraged Positions Wiped Out

The cryptocurrency market suffered a sharp sell-off over the weekend as oil prices surged to $112 per barrel. Escalating geopolitical tensions in the Middle East triggered a broad risk-off move, and Bitcoin plunged from its weekly high of $75,912 to $68,241, losing 9% in a matter of hours. The total crypto market cap shrank to $2.36 trillion.

Oil shock and macroeconomics

Brent crude surged to $112 per barrel following an escalation around the Strait of Hormuz - the critical chokepoint for global oil exports. Goldman Sachs projected an average price of $110 through late April with a worst-case scenario of $135 per barrel. WTI rose to $98.75.

The energy price spike amplified inflation fears and crushed hopes for a near-term Fed rate cut. The probability of a rate hike by October 2026 rose to 50%, making risk assets less attractive to investors.

Cascading liquidations hit $1 billion

Thin liquidity below the $70,000 level turned a pullback into an avalanche. According to CoinGlass data, total liquidations exceeded $1 billion in 24 hours, with 85% hitting long positions. In the first hour alone, $240 million in leveraged positions were wiped out, each wave of liquidations pushed prices lower, triggering the next.

Altcoins suffered even deeper losses

Ethereum lost 1.86%, trading near $2,057. XRP dropped 2.6% to $1.41, Solana fell 1.95% to $88.55, Cardano declined 3.19%, and Dogecoin shed 2.45%. Avalanche posted the steepest drop among the top 20 at 3.2%. TRON was the only gainer with a modest 0.25% increase.

Analysts note that altcoins suffered more than Bitcoin due to thinner liquidity and higher leverage exposure in those markets. According to CryptoQuant, 38% of altcoins are trading near their all-time lows - the deepest pullback of the current cycle.

Miners operating at a loss

The price decline deepened the mining profitability crisis. The cost of producing one BTC currently stands at approximately $88,000, while the market price has fallen to $68,000. This means miners are losing roughly $19,000 on every Bitcoin mined. Network difficulty has already dropped 7.76%, signaling that some equipment is being shut down.

What comes next - key levels and scenarios

Analysts are considering two main scenarios. If Middle East tensions de-escalate and oil prices retreat, Bitcoin could quickly recover above $72,000, reclaiming gains from eight consecutive days of growth before the crash. If the conflict intensifies and oil moves toward $135, additional market pressure could push BTC toward the $65,000 level.

For those planning to exchange Bitcoin for dollars, it is important to factor in elevated volatility and slippage risk in a thin market. Regardless of the outcome, traders should exercise caution with leverage while geopolitical uncertainty persists.