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Bitcoin (BTC) fell by about $60,000 on Wednesday after Iranian missile strikes on Israel, in response to Israel’s killing of military leaders and its attack on Hezbollah in Lebanon, raised fears of a wider regional war involving Iran and the United States as Israel escalates its assault on Lebanon.
The price of BTC fell by 3.1% to around $61,616 in 24 hours, and by 4.4% over the past week, mainly due to the increasing uncertainty and risk aversion in financial markets following geopolitical tensions, which prompted investors to sell riskier assets such as cryptocurrencies, which was directly reflected in the price of Bitcoin.
White House Sends Military Support to Israel as Tensions Rise
The seriousness of the situation was underscored after President Joe Biden and Vice President Kamala Harris met in the White House Situation Room, and reports indicated that US military resources were being mobilized to bolster Israel's defenses.
Reports also indicate that most of the Iranian missile interceptions were aided by US Navy destroyers, although there were some “few hits,” according to Israeli military spokesman Daniel Hagari.
Crypto Markets React to Iran-Israel Tensions
Mitchell Nixon, chief research officer at Imperial Wealth, noted that the current decline in Bitcoin’s price is similar to previous declines in April and July, which were triggered by rising tensions in the Middle East and the subsequent sell-off in crypto assets.
September 30, 2024 marked the eighth consecutive positive day for Bitcoin Spot ETFs, with net inflows of $61.2 million. But the trend didn’t last long, as on October 1, the funds lost $242.5 million in investments, according to data from SoSoValue.
In contrast, the end of September was not good for Ethereum Spot ETFs, as they lost $822,300 in investments, and these losses worsened on October 1 to reach $48.52 million.
“The geopolitical concerns came at a time when traders were already taking profits ahead of the upcoming FOMC meeting… Data from CoinGlass indicates significant outflows from major cryptocurrencies including Bitcoin, Ethereum and Solana, with more sellers than buyers in the current market climate,” Nixon wrote in a note on Wednesday.
Nixon confirmed that this September, despite the ongoing tensions, was the best for Bitcoin compared to previous Septembers in more than a decade, that is, since before 2013.
