Bitcoin Slides to $60,000 Amid Iranâs Missile Strikes on Israel
Bitcoin has dipped over 3%, influenced by escalating geopolitical tensions and a sell-off of riskier investments, including cryptocurrencies.
The cryptocurrency fell to approximately $60,000 on Wednesday following missile strikes by Iran against Israel, a response to Israel's recent actions against militant leaders and its operations in Lebanon against Hezbollah.
Fears of a potential wider conflict involving Iran and the US have intensified as Israel continues its military operations in Lebanon.
On the day, Bitcoin dropped by 3.1%, settling around $61,616, and it has declined 4.4% over the past week. This downturn is largely attributed to rising uncertainty and a cautious approach from investors amid the geopolitical unrest.
Consequently, many investors are offloading riskier assets like cryptocurrencies, directly affecting Bitcoin's valuation.
đšUS Military Support for Israel Amid Escalating Tensionsđ
Reports have detailed the seriousness of the situation as President Biden and Vice President Harris convened in the White House Situation Room. They have deployed US military resources to bolster Israel's defenses.
Although Iranian missiles were mostly intercepted with assistance from US naval destroyers, Israeli military spokesperson Daniel Hagari acknowledged that a few did reach their targets.
Crypto Market Response to Iran-Israel Conflictđ±
Mitchell Nixon, chief research officer at Imperial Wealth, noted that the current decline in Bitcoin is reminiscent of similar drops seen in April and July, both triggered by rising tensions in the Middle East that led to significant sell-offs in crypto markets.
On September 30, 2024, Bitcoin spot ETFs experienced net inflows of $61.2 million, indicating an 8-day positive trend. However, this reversed on October 1 with a notable outflow of $242.5 million, according to data from SoSoValue.
In contrast, Ethereum spot ETFs concluded September 30 with an outflow of $822,300, which worsened on October 1, escalating to $48.52 million.
"Beyond the geopolitical worries, traders are also taking profits ahead of the upcoming Federal Open Market Committee meeting," Nixon commented in a note on Wednesday.
"Data from CoinGlass shows significant outflows from major cryptocurrencies such as Bitcoin, Ethereum, and Solana, with sellers outnumbering buyers in the current market environment."
Despite these ongoing tensions, Nixon pointed out that Bitcoin achieved its strongest September close in over a decade, marking the highest level since before 2013.
