The leading cryptocurrency, Bitcoin, fell sharply to $60,000 yesterday as a result of Iran’s intense missile attacks against Israel.
Reports from Iran’s 400 missile launch into Israeli land yesterday, which marked a major escalation in an already tense region, were all over the world media.
The missile strikes were a reprisal for Israel’s most recent attacks on Hezbollah and Lebanon, as well as its prior execution of top militant leaders.
The geopolitical tension meter is at an all-time high due to the region’s tensions, which have sparked fears of an all-out conflict between the United States and Iran.
The value of Bitcoin has plummeted due to these tensions. On the day of the Iranian attack on Israel, the main cryptocurrency asset fell 3.1% to roughly $61,616. Moreover, Bitcoin decreased by 4.4% in the last week.
The escalation of global tensions is impacting the price of Bitcoin because of the financial markets’ growing aversion to risk and growing uncertainty.
The trend-following investors are liquidating riskier assets, such as Bitcoin, causing a price decline.
The crypto intelligence firm Imperial Wealth did a good job of covering the drop in the price of Bitcoin due to global concerns.
Despite bitcoin’s spectacular rise in the first week of this month, Imperial Wealth detailed the cryptocurrency’s declining price in an X article.
“Bitcoin Reaches $60,000 Amidst Iranian Missile Strike on Israel.”
”Bitcoin’s value plummeted to $60,000 on Tuesday afternoon following Iran’s missile attack on Israel, later recovering slightly to $61,500. This represents a 7.5% decline from its recent $66,500 peak, causing uncertainty in global markets.”
”The cryptocurrency community’s hopes for a bullish “Uptober” were dashed as both crypto and stock markets fell sharply. The downturn was primarily driven by escalating Middle East hostilities, with Iran targeting Israeli cities and Israeli civilians seeking shelter”.
”The situation’s gravity was highlighted by US leadership’s involvement in Israel’s defense.”
A few months ago, Mitchell Nixon, the Chief Research Officer of Imperial Wealth, identified escalating geopolitical tensions, particularly in the Middle East, as the cause of the recent declines in the price of Bitcoin.
According to him, the recent decline in Bitcoin’s price is comparable to those that occurred in April and July, both brought on by unrest in the Middle East.
Nixon mentioned that traders were hoarding profits ahead of the Federal Open Market Committee meeting, in addition to the intensifying tensions between Iran and Israel.
What To Note
Despite the present decline in the price of Bitcoin. It’s crucial to remember that the price of Bitcoin reached its highest point since before 2013.
There are grave worries that Iran’s recent reprisal against Israel may spark a protracted battle in the region that would have an impact on world oil prices.
Bitcoin has recovered from $60,000 to $61,296 at the time of the publication.
