Bitcoin Plummets Below $60K Amidst Israeli Retaliation on Iran’s Missile Strike
In a surprising turn of events, the price of Bitcoin (BTC) experienced a sharp decline of 5% and briefly dipped below the $60,000 mark. This drop was attributed to Israel’s retaliation against Iran following a missile strike last week. Reports from ABC News indicate that Israel launched a retaliatory strike, targeting various military bases and airfields in Iran. However, Bitcoin quickly recovered and stabilized around the $60,000 level.
The impact of this geopolitical tension was not limited to Bitcoin alone, as Ether (ETH) also saw a decline of 3.45%, currently trading at $2,800 according to CoinDesk Indices data. Conversely, PAXG, a tokenized version of gold managed by Paxos, experienced a modest increase of nearly 3% during this period.
Market experts are closely monitoring the situation, with March Zheng, a managing partner at Bizantine Capital, stating that if the market turmoil persists, the next crucial support level for Bitcoin could be around $55,000. Some traders see this as an opportunity to buy, as Jun-Young Heo, a derivatives trader at Presto, highlighted in a Telegram message that any panic sell-off driven by war-related news could present a favorable buying opportunity for Bitcoin.
The impact of this tension extends beyond the cryptocurrency market, as major stock indices in Asia also took a hit. Hong Kong’s Hang Seng index is currently down 3.5%, Japan’s Nikkei 225 experienced a significant drop of 6.5%, and Taiwan’s TAIEX saw a decline of 5%.
While the situation between Israel and Iran unfolds, the cryptocurrency market remains volatile, influenced by geopolitical events and investor sentiment. As market participants grapple with these developments, it is essential to stay vigilant and adapt to the rapidly changing landscape.