The price of Bitcoin faced a sharp decline over the weekend as reports of Iran launching missile and drone attacks on Israel shook the market. This sudden turn of events led to a significant selloff not only in Bitcoin but also in other major cryptocurrencies. Iran’s drone attack on Israel was said to be in retaliation to an earlier attack on an Iranian diplomatic building in Syria, which resulted in the deaths of several Iranian officers. This series of events marked a notable escalation in tensions between the two nations, potentially leading to a full-scale war.
Bitcoin’s price dropped by 8.07% following these reports, plummeting from $67,132.1 to $61,710.58. This downward movement in price showcased high selling pressure in the market. Interestingly, this was the second consecutive day of losses for Bitcoin, as it had experienced a 5% decline the day before amid minor turbulence in the US stock markets. In recent weeks, Bitcoin has been struggling to maintain its bullish momentum, recording a 12.51% loss in the last month according to data from CoinMarketCap.
Bitcoin’s Current Position
Despite the recent setbacks, Bitcoin is currently trading at $63,943, showing a 3.61% gain from its earlier slump on Saturday. Moreover, the token’s daily trading volume has increased by 22.46%, reaching a value of $57.37 billion. Investors are closely watching Bitcoin’s performance as the Halving event approaches, hoping for a potential price surge based on historical trends.
Impact on Altcoins
The turmoil in the Middle East also had a significant impact on altcoins, with Ethereum, the second largest cryptocurrency, experiencing a loss of 10.89%. Ethereum’s price fell to as low as $2,880.16 in the wake of the geopolitical tensions. Other popular tokens such as Solana (SOL), XRP, and Avalanche (AVAX) also saw price decreases of 12.68%, 18.11%, and 16.00%, respectively. Overall, the total crypto market cap declined by 7.78%, dropping to around $2.2 trillion.
The recent events in the Middle East have underscored the volatile nature of the cryptocurrency market, where geopolitical factors can have a substantial impact on prices. Investors are advised to closely monitor global developments and conduct thorough research before making any investment decisions. As with all investments, there are inherent risks involved, and it is crucial to make informed choices based on reliable information.