The cryptocurrency market fell as Iran launched a missile attack on Israel. Bitcoin falls to $62,000. Ethereum falls below $2,500. The global cryptocurrency market capitalization decreased by 2.72% to $2.18 trillion.
The global cryptocurrency market has plummeted following reports that Iran fired a missile at Israel.
Escalating geopolitical tensions have sent shockwaves through financial markets around the world, and crypto assets have been hit hard.
As news of the missile attack spread, the cryptocurrency market reacted quickly. Bitcoin (BTC), the largest cryptocurrency by market capitalization, has fallen to $61,932.92 at the time of writing, while Ethereum (ETH), the second largest cryptocurrency, has experienced a steep decline of 3.42%, with the price It fell below $2,499.30.
Often the more volatile altcoins are Arweave (AR), Notcoin (NOT), Gala (GALA), and Worldcoin (WLD), which hit double digits as investors rushed to unload risky assets. It fell and experienced an even steeper decline.
Due to the market crash, the global cryptocurrency market capitalization decreased by more than 2.72% to $2.18 trillion.
The sudden drop in cryptocurrency prices highlights the market's sensitivity to geopolitical events. Although historically seen as a hedge against inflation and economic uncertainty, cryptocurrencies have not proven immune to geopolitical shocks.
Investors, spooked by widespread regional instability and fears of its potential impact on global markets, moved into safer assets such as gold, where prices rose.
The attack marks a serious escalation in the already volatile Middle East region. The Iranian missile launch was reportedly in retaliation for Israel's operation in Lebanon that led to the removal of the Hezbollah leader.
But Israel has vowed to defend its territory and has responded quickly, raising concerns of an impending large-scale conflict.
Although the full extent of the conflict's impact remains unclear, the continued instability in the Middle East is likely to keep the cryptocurrency market under stress in the coming days.
Traders and analysts are currently closely monitoring both diplomatic developments and market reactions.