Overnight Saturday, the cryptocurrency market took a beating amidst a heightened geopolitical crisis. Following an unprecedented Iranian drone and missile bombardment of Israel, the LA News Center reported significant selling pressure on digital assets.
Bitcoin Plunges Amid Tensions
Bitcoin, the leading cryptocurrency, experienced an 8% downturn late Saturday evening as news of the attack broke. Its price plummeted from around ,000 to below ,000 on the Bitstamp exchange. At the time, it stood as the steepest sell-off for Bitcoin in over a year.
Other Coins Follow Suit
The decline in Bitcoin was echoed by other major cryptocurrencies. Ether, the second-largest digital asset, fell up to 10% while many altcoins suffered similar losses.
Iranian Response and Market Impact
The Iranian drone and missile attack marked the first direct assault on Israel from Iranian territory. Israel claimed to have intercepted 99% of the threats, amid reports of 300 being launched. This escalation of Middle East tensions has clearly shaken investors.
In response, the Iranian currency, the rial, hit a record low on the unofficial market. The Tel Aviv Stock Exchange’s flagship index, the TA-35, also saw a slight dip in the wake of the attack.
Cryptocurrency Price Action
Bitcoin’s plunge may have been driven by its sensitivity to risk assets, which tend to suffer during times of uncertainty. The flow of funds into U.S. spot Bitcoin ETFs has bolstered the cryptocurrency’s price recently, but news of the Iranian attack has offset these gains.
Conclusion
The cryptocurrency market’s reaction to the Iran-Israel conflict highlights its susceptibility to geopolitical events. As the situation in the Middle East remains tense, investors will be closely monitoring any further developments that could impact market sentiment.
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Data sourced from: cnbc.com
