Cryptocurrencies fell by the most in a month in recent trading, after Iran fired hundreds of ballistic missiles at Israel in a sharp escalation that increased tensions in the Middle East.
In terms of trading, during the last 72 hours of trading, the combined market value of the crypto market decreased by 7%, with losses amounting to about $164 billion, after its total market value decreased from $2,338 billion in trading last Sunday morning, to about $2,174 billion in trading Wednesday morning.
Bitcoin topped the losing cryptocurrencies, recording a 3.4% decline in recent trading, with weekly losses of 3.2%, to trade at $61,773 on Wednesday morning. Its combined market value also fell to $1,220.8 billion, capturing a market share of 56.15% of the total cryptocurrency market.
Ethereum, the second largest cryptocurrency, lost 6% in the past few hours, with a weekly decline of 5.5% over the past week, reaching $2,479. Its combined market value dropped to $298.55 billion, accounting for a market share of 13.73% of the total crypto market.
The market had recorded strong gains after the US Federal Reserve cut interest rates, which reinforced expectations that the market would witness correction movements due to profit-taking operations.
This strong rally had some traders expecting a rise beyond the March record high of $73,798, until the regional conflict in the Middle East came along and lowered expectations.
In a recent research note, Arbelus Markets' head of trading, Sean McNulty, claimed that the sell-off was a "temporary setback" as the Federal Reserve began cutting interest rates.
The government that emerges after the US presidential election in November is also likely to be more friendly to cryptocurrencies, he said. âThe seasonal trend of October being the best month for Bitcoin is still alive and well,â he added.
Markets are currently bracing for an escalation in the conflict as Israeli Prime Minister Benjamin Netanyahu vows to respond to Iranian strikes.
U.S. stock futures were mixed on Wednesday, while oil prices rose amid supply concerns. Bitcoin, the worldâs largest cryptocurrency, could hit nearly $200,000 in the next 18 months, said Zach Bradford, CEO of Bitcoin mining company CleanSpark.
