Bitcoin temporarily dips below $60,000 amid Israel-Iran conflict

Onwubuke Melvin
Onwubuke Melvin

Bitcoin witnessed a temporary dip below $60,000 on Friday morning following the news that Israel had launched retaliatory missile strikes against Iran in response to Iran’s recent foiled attack when it fired missiles toward Israel as tension increased between both countries.

BeinCrypto reports that a senior US official confirms Israel’s strikes, which resulted in the temporary drop of Bitcoin prices to less than $60,000.

Israel responded to Iran’s recent attack when it reportedly launched over 300 drones and missiles towards Israel. Israel however stated that the majority of the missiles were intercepted by Israel and its allies including the United States.

The recent hostilities in the Israel- Iran conflict have led to a brief drop in value of Bitcoin, dropping to $60,000. However, at the time of writing, Bitcoin has recovered and is now worth 64,812.

Also, due to the tensions in the Middle East, Ethereum, the world’s second-largest cryptocurrency witnessed a sharp decline in value. At the time of writing this report, Altcoin dipped $2,876 but had since recovered to $3,101.

In addition, In the last hour, there was only a slight $49.35 million in liquidation of cryptocurrencies, mainly due to very large positions. However, over $250 million has been liquidated in the last 24 hours alone, according to Coinglass data.

The Israel-Iran conflict is the first time the two Middle Eastern countries would be directly having a confrontation.

The Chief investment officer at digital asset trading firm Zerocap, Jonathan de Wet said that the price of Bitcoin could fall to as low as $58,000, due to a worsening situation in the Middle East.

Due to the selling pressure that comes with it, the tensions in the Middle East have an impact on the price of cryptocurrencies.

Global investors are forced to turn to traditional safe-haven assets such as bonds, gold, and the US dollar while shifting from risky investment vehicles such as cryptocurrencies, as tensions and uncertainty in the Middle East grow.

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