Bitcoin plunges $4,000 as Middle East conflict sparks market panic
Bitcoin prices have fallen sharply as conflict in the Middle East escalates, but this is nothing new.
Bitcoin prices fell nearly $4,000 in less than 24 hours after Iran launched a missile attack on Israel on the evening of October 1.
On Tuesday, the asset was trading just over $64,000, but after the attack, prices fell sharply to bottom out just over $60,000.
During early Asian trading on Wednesday, BTC had recovered to around $61,700, but was still down 3% on the day
No need to panic
According to the Bitcoin Fear and Greed Index, market sentiment has quickly shifted from “greed” a few days ago to “fear” today.
This is nothing new, and panic selling is largely an irrational behavior. Some may call Bitcoin a “safe haven” asset, but it has previously exhibited this behavior during periods of geopolitical tension.
In mid-April, BTC fell more than 13% in the days following an Iranian drone attack on Israel.
The shadow of the Middle East war has shaken the entire cryptocurrency market, with the total market value falling 4.7% on the day, a drop of about $150 billion. According to CoinGecko data, the current market value is $2.26 trillion.
Ether fell nearly 8% to $2,450 before recovering slightly during the Asian trading session on Wednesday.
As usual, altcoins suffered greater losses, with Dogecoin (DOGE), Toncoin (TON), Avalanche (AVAX), Shiba Inu Coin (SHIB), Chainlink (LINK) and Polkadot (DOT) suffering more serious losses.
In other words, the story is still the same old routine, and those who lack confidence in this asset class are also panicking.
If you are still confused about how to operate and want to accurately grasp the entry and exit timing, 👉🐷 follow Beifeng, which will update the best information and spot contract strategy sharing in real time every day!
