3 min read
Bitcoin, the market-leading cryptocurrency fell to $60,000 as a result of Iran’s missile assault on Israel. This event has jeopardized the anticipated “Uptober” bounce, as the cryptocurrency market began the month in the red owing to rising global tensions.
Iran launched around 400 missiles toward Israel in reaction to Israeli airstrikes on Hezbollah in Lebanon, escalating the conflict between the two countries.
IRAN ATTACKED ISRAEL
400+ missiles have been launched and many of them hit their targets
Bitcoin price instantly dropped to $60,000 pic.twitter.com/299MMIuD0M
— Cryptopolitan (@CPOfficialtx) October 1, 2024
Impact of the Israel-Iran Conflict on the Crypto Market
The cryptocurrency market is expected to continue to decrease as the Israel-Iran crisis worsens. Iran’s attacks on Israel, following the ground invasion of Southern Lebanon and the assassination of Hezbollah leader Hassan Nasrallah, have prompted Bitcoin to drop 3.1% to $61,616. Bitcoin is down 4.4% this week.
According to Coinglass data, $351 million in liquidations occurred within 24 hours of the conflict’s development. Bitcoin prices plummeted below $63,000, as the whole market experienced losses, indicating ongoing market stress.
Political tensions, such as the Israel-Iran conflict, have historically caused investors to liquidate their stock in the financial market due to the uncertainty created by the conflict. Bitcoin plummeted by 8% earlier this year as Iran and Israel escalated tensions following an Iranian drone strike. This time, the present rise is expected to have a significantly higher impact on the stability of the cryptocurrency market.
According to CoinGape research, Bitcoin was already poised for a decline after falling below $65,000. The Iran-Israel crisis appears to have accelerated this fall, weighing on the overall crypto market surge.
The reaction of investors to Bitcoin’s Drop
Due to rising geopolitical tensions between Israel and Iran, which indicate an unstable economy, investors move their money out of riskier investments like Bitcoin, causing a decline in Bitcoin values.
Imperial Wealth, a crypto intelligence organization, noted in an X post that Bitcoin’s value has dropped after it rose to the occasion at the beginning of the 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 of Imperial Wealth noted that the current Bitcoin decline is comparable to that seen in April and July and has its roots in Middle Eastern crises. Nixon went on to say that, in addition to geopolitical factors, many traders are locking in profits ahead of the Federal Open Market Committee( FOMC) meeting, adding to the volatility.
Such upheaval, combined with the profit-making frenzy preceding major economic events, is contributing to the volatility of bitcoin values.
