Bitcoin, the flagship cryptocurrency dropped several digits to $60,000 yesterday following intense Missile strikes by Iran on Israel.
The global audience was awash with reports yesterday as Iran fired over 400 missiles into Israeli territory marking a significant escalation in an already tense region.
The missile attacks were in retaliation to Israel’s earlier killing of Top militant leaders and the latest assaults on Lebanon and Hezbollah.
The tensions in the region have raised concerns about an all-out war between Iran and USA tipping the Geopolitical tension meter to an all-time high.
Bitcoin has sharply dropped in value as a result of these tensions. The primary crypto asset dropped by 3.1% to about $61,616 on the day of the Iranian assault on Israel. Bitcoin has also dropped 4.4% over the past week.
The rise in geopolitical tensions is affecting Bitcoin price due to growing uncertainty and increasing risk aversion in the financial markets.
Investors following the trends are selling off riskier assets like Bitcoin leading to a drop in its price.
The decline in Bitcoin price as a result of the geopolitical tensions was covered effectively by Imperial Wealth a crypto intelligence company.
Imperial Wealth in an X post outlined the failing price of bitcoin despite its brilliant surge in the first week of this month.
“ 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.”
Mitchell Nixon, the Chief research officer at Imperial Wealth pinpointed the recent drops in Bitcoin price a few months ago to rising geopolitical tensions, especially in the Middle East.
He stated that the current Bitcoin price was similar to price drops in April and July and both were caused by tensions in the Middle East.
In addition to the Iran-Israel escalations, Nixon noted that traders were also collecting profit ahead of the upcoming Federal Open Market Committee meeting.
What to Know
- Despite the current Bitcoin price drop. It is important to know that Bitcoin just had its best September in regards to price since before 2013.
- There are serious concerns that the recent retaliation by Iran on Israel could lead to a wide-scale conflict in the region affecting global oil prices.
- At the time of the report, Bitcoin has recovered from $60,000 to $61,296
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