Middle East Tensions Squeeze Crypto Markets Hard
Escalating Israel-Iran conflict impacts cryptocurrency prices: Bitcoin plummets to $103,000
In the wake of Middle East tensions, with Israel striking Iran's nuclear facilities and the subsequent declaration of national emergency, the crypto market has taken a nose dive. According to reports, close to $200 billion has been wiped out, causing the total market value to plummet by over 7% to an estimated $3.36 trillion.
International Stress Waves Through Crypto
News outlets, such as BBC, have been providing updates on the developing situation between Israel and Iran. civilian casualties have been reported in Tehran due to Israeli strikes as Iranian media alleges.
The resulting anxiety and uncertainty have sent shockwaves through the crypto sphere. Data from Coinglass reveals that in the last 12 hours, there have been liquidations amounting to a staggering $1 billion. Approximately 250,000 investors have suffered losses, with the majority of these positions being long-term, notably in Bitcoin and Ethereum.
Falling from Grace: Bitcoin, Ethereum, and Altcoins
Bitcoin took a tumble, plummeting from $108,350 to $103,000 during Asian trading hours on Friday before recovering slightly to $104,000. Ethereum wasn't far behind, shedding around 9% of its value, dropping from $2,760 to $2,470 before rebounding to $2,500. Altcoins like Solana, Dogecoin, and Cardano met a similar fate, experiencing declines of approximately 12%, 10%, and 9.5%, respectively.
Many other crypto assets, such as Sui, Chainlink, Avalanche, Shiba Inu, and Hedera, also slumped. However, losses in BNB and Tron were somewhat contained.
A Temporary Downturn?
Despite the recent market plunge, financial analysts maintain a positive outlook for the crypto industry, particularly considering Bitcoin's role as a "safe haven" during geopolitical upheavals. James Lavish, a former hedge fund manager, posits that crypto investors, fearful of losses in government bonds and long-term inflation, seek refuge in Bitcoin instead.
He explains, "During times of geopolitical turmoil, investors are drawn to assets that can withstand depreciation. Bitcoin is one such choice that smart investors make."
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Crypto investors, faced with geopolitical tensions, have experienced heavy losses, particularly in Bitcoin and Ethereum, as panic selling marked a loss of over 7% in the total market value to an estimated $3.36 trillion. Witnessing the unrest between Israel and Iran, cryptocurrency speculators seek refuge in Bitcoin despite the recent market plunge, viewing it as a "safe haven" during turbulent times.
