Bitcoin’s price took a hit over the weekend as the cryptocurrency market suffered heavy selling amidst escalating tensions in the Middle East. The sell-off was triggered by an unprecedented Iranian drone and missile attack on Israel, causing Bitcoin to plummet by 8% late on Saturday evening.
The attack marked the first direct assault on Israel from Iranian territory, with Israel reporting the elimination of 99% of the identified threats. This retaliation was reportedly in response to a suspected Israeli strike that resulted in the death of top Iranian officials in Syria.
As a result of the heightened geopolitical tensions, Bitcoin’s price dropped from around $70,000 to below $62,000 before rebounding to trade above $64,000 by Sunday morning. Other digital coins like ether also saw significant declines, down by up to 10% in some cases.
The sell-off in Bitcoin was described as the steepest in over a year, with the cryptocurrency hitting new records recently due to inflows into U.S. spot Bitcoin ETFs. The worsening macroeconomic climate and the collapse of industry giants like FTX and Terra have also contributed to the volatility in Bitcoin’s price.
The Iranian currency also took a hit, falling to a record low of 705,000 rials/USD on the unofficial market. The Tel Aviv Stock Exchange’s flagship index, the TA-35, was down 0.38% at 10:23 a.m. London time in response to the escalating tensions in the region.
Overall, the cryptocurrency market’s reaction to the Middle East conflict highlights the interconnectedness of global events and their impact on digital assets. Investors will be closely monitoring the situation for further developments and their potential implications on Bitcoin’s price movement.