Bitcoin, the dominant digital currency in the world, has nosedived to $60,000 yesterday after Iran launched a missile assault against Israel. The barrage, which U.S. analysts claim involved more than 400 missiles, represented a serious step-up in activities in an already volatile environment. This was necessitated by Israel’s prior assassination of several senior militant commanders and raids in Lebanon and against Hezbollah.
Market experts stated that the current geopolitical situation has escalated uncertainty and risk, resulting in a prevailing aversion that pushed traders away from Bitcoin. “The attack on Israel caused Bitcoin to fall 3.1% to $61,616 on that day, with a 4.4% week-on-week drop,” said Mitchell Nixon, Chief Research Officer of Imperial Wealth.
Nixon explained, “This is just a sudden change based on traders’ reactions to the Iran-Israel conflict. They are also cashing in ahead of the Fed meeting scheduled for next week.”
Despite the ongoing slump, Bitcoin had its strongest September closing in a decade, since before 2013. However, the possibility of an outright Iranian-American conflict raises greater concerns, with far-reaching implications, including global crude oil price impacts.
As of the last check, the price of Bitcoin had improved slightly to $61,296.