- Due to Israeli strikes on Iran, there were immediate losses below $60,000. However, Bitcoin quickly recovered, demonstrating its durability in the market.
- If the unrest persists, Bitcoin may drop to $55,000, but there may still be opportunities to buy if there are significant sell-offs.
The price of Bitcoin dropped below $60,000 in an abrupt market response to international unrest, with a low of roughly $59,600 reported on the Binance platform.
The announcement of Israel’s missile attacks against Iran, which came after an aggressive drone and missile attack by Iran last Saturday, precipitated this dramatic decrease, in line with what ETHNews previously disclosed.
Geopolitical Unrest and Its Effect on the Market
ABC News first reported on the strikes early on Friday morning, citing confirmation from a top US official.
According to Israeli military sources, there were over 300 drones and missiles used in the attack, almost all of which Israel and its allies, including the United States, intercepted. In reaction, there were notable price swings for Bitcoin and other cryptocurrencies.
Quick Market Responses and Recoveries
After the original announcement, the price of Bitcoin rapidly dropped below the psychological barrier of $60,000.
Despite a minor decrease in the past day, the market proved resilient as Bitcoin reversed course and reached a greater worth of over $61,500, according to CoinGecko. Small declines in altcoins coincided with this recovery; Ethereum had a 2% drop to trade at about $3,000.
In periods of geopolitical unrest, there is a greater need for assets with qualities like liquidity, scarcity, and minimal counterparty risk, according to bitcoin analyst Tuur Demeester.
He mentioned gold, commodities, and bitcoin as assets that usually gain in these kinds of situations. A strong market sentiment is indicated by the market’s quick recovery to almost $62,000 following reports of minor damage from the attacks.
Iran-Israel war is escalating. Oil price up nearly 4% for the day. My thesis remains that military chaos will always be a demand catalyst for liquid, scarce assets with low counterparty risk. I see bitcoin, commodities & gold as safe bets in this environment. https://t.co/W3l6ONmZU9
— Tuur Demeester (@TuurDemeester) April 19, 2024
Future Prognosis and Limitations
Bizantine Capital managing partner March Zheng speculated that if market turbulence continues, Bitcoin may reach a future milestone of $55,000. However, derivatives trader Jun-Young Heo was upbeat, saying that any panic sale prompted by war-related news might still be a good time to buy.
According to data from CoinMarketCap, as of the most recent updates, the price of Bitcoin has increased to almost $65,000, demonstrating a strong comeback with a 6.48% increase in the last day. It also shows a decrease of 8.55% throughout the previous seven days, indicating continued market volatility.