Bitcoin tumbles as tensions rise in Middle East after Iran attacks Israel

Bitcoin tumbles as tensions rise in Middle East after Iran attacks Israel

Markets react: Bitcoin drops after first direct strike on Israel.—Reuters/File 

The weekend gave a double dose of trouble to the financial market with Cryptocurrency valuations reacting bearishly to the heightening tensions in the Middle East after Iran attacked Israel on Sunday, Reuters reported. 

Bitcoin, the most popular cryptocurrency, fell sharply by 8% after learning of an Iranian drone attack and missile exchange with Israel, which was reported in the news. This indicated the first direct attack on Israel from Iranian territory.

Only digital currencies, widely believed to be risky assets, were actively traded during the weekend. The sudden sell-off, the analysts think, appears to be the initial reaction of the market to the high tensions. 

Bitcoin, which recently rose to the highest levels with billions of private investments, fell from $70,000 to under $62,000 and later recovered to $64,000 by Sunday morning. Other than Bitcoin, other notable cryptocurrencies such as Ethereum witnessed a decrease of up to 10%.

Nevertheless, the Iranian currency, the rial, experienced a fall, reaching a record low against the US dollar on Sunday’s unofficial market. Besides the Israeli stock market, the TA-35 index also saw a minimal slump in its performance

The situation in the Middle East remains very volatile and its influence on global markets has not yet been wholly understood. This weekend’s events, nevertheless, show how geopolitical instability can trigger financial tremors even in the cyberspace of cryptocurrencies.

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