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The leading cryptocurrency, Bitcoin, experienced a significant decline, dropping to around $60,000 yesterday, following intense missile strikes by Iran on Israel.
The global community was inundated with reports yesterday as Iran launched over 400 missiles into Israeli territory, marking a substantial escalation in an already volatile region.
The missile attacks were in retaliation for Israel's previous killing of top militant leaders and the recent 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 state 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.
