Bitcoin, the primary crypto asset, has reacted to ongoing escalations in the Middle East by dropping several digits to $61,000. The crypto asset dropped following a deadly missile attack by Iran on Israel yesterday marking a new level of geopolitical tensions and threats of war in the region.
Yesterday the global community was heated up with reports of Iran firing over 400 missiles into Israeli territory in retaliation to Israel’s earlier elimination of top militant leaders and latest assaults on Hezbollah and Lebanon.
The growing tension in the region has raised global concerns about an all-out war in the region involving Israel, its ally the United States, and Iran.
Bitcoin sharply reacted to these geopolitical tensions dropping by 3.1% to $61,616 on the day of the attack by Iran. Bitcoin is exchanging hands for $61,384 dropping by 4.0% in the last 24 hours and 3.3% in the last week.
Bitcoin price is being affected by geopolitical tensions due to the growing uncertainty and an increase in risk aversion by investors.
Investors spooked by the events in the Middle East are selling their crypto assets which is riskier resulting in a drop in the price of such assets.
Imperial Wealth, a crypto intelligence company confirmed the drop in Bitcoin price due to the Iranian attack on Israel while hoping for a bullish October to upturn the current state of things.
“ 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 pointed out other factors that contributed to the drop in Bitcoin price.
Nixon argued that in addition to the Iran-Israel issue, Traders are also collecting profits ahead of the upcoming Federal Open Market Committee meeting.
Despite the bearish news, it is important to note that Bitcoin just had its best September in terms of price since 2013.