Bitcoin took a sharp hit early Tuesday, falling by more than 6% after Iran launched missile strikes on Israel, heightening tensions in the Middle East. The cryptocurrency dipped below $61,000 as global uncertainty pushed investors away from riskier assets like Bitcoin, opting instead for traditional safe havens such as gold.
- Bitcoin’s Volatility: The world’s largest cryptocurrency dropped from $62,200 to a low of $60,200 within a few hours, as fears surrounding the conflict escalated.
- Geopolitical Impact: News of U.S. President Joe Biden ordering military aid to Israel added to investor anxiety, causing sharp selloffs in cryptocurrencies. Bitcoin experienced a $3,800 decline in just a few hours.
- Market Reaction: Large-scale liquidations were seen across major cryptocurrencies like Bitcoin and Ethereum, with over $481 million in losses reported. This reaction underscores how sensitive crypto markets are to global geopolitical unrest.
Safe Havens Shine:
- Gold’s Rise: While Bitcoin faced a selloff, gold prices surged 1.2%, nearing record highs as uncertainty-driven investors sought stability. This flight to gold mirrors past trends seen during the Russia-Ukraine conflict and rising U.S.-China tensions.
What Lies Ahead?
- Analysts warn that Bitcoin might test support levels around $60,000 or lower if geopolitical tensions worsen. Although Bitcoin has historically rebounded after initial drops during global conflicts, the current volatility may persist.
As the Middle East conflict unfolds, crypto investors remain on edge, watching closely how these tensions could impact the broader markets and future of digital assets.
