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Bitcoin recovers after briefly plunging below $60,000 amid global concerns over Iran-Israel conflict
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Bitcoin experienced a sharp decline of more than 5.5%, tumbling to $59,961, while Ether, the second-largest cryptocurrency by market capitalisation, mirrored the trend with a similar percentage drop, falling below the $3,000 threshold to $2,895.
The cryptocurrency market witnessed a significant downturn on Friday, April 19, with Bitcoin declining below the $60,000 mark amid heightened concerns over geopolitical instability.
Reports of an Israeli missile strike on Iran triggered a rush out of risky assets, sending shockwaves through digital currency markets.
Bitcoin experienced a sharp decline of more than 5.5%, tumbling to $59,961, while Ether, the second-largest cryptocurrency by market capitalisation, mirrored the trend with a similar percentage drop, falling below the $3,000 threshold to $2,895.
The cryptocurrency market dropped suddenly as the US dollar gained strength, making the sell-off in cryptocurrencies worse.
However, Bitcoin recovered the losses to trade above $64,000 level on Friday after reports suggested limited damage from an Israeli strike on Iranian military targets, according to Coindesk.
According to ABC News, Israeli missiles targeted a site in Iran, as confirmed by a US official, escalating tensions following a recent drone strike by Iran on Israel.
The geopolitical turmoil intensified further with reports from Iran’s Fars news agency of an explosion heard at the airport in the city of Isfahan.
The news of military actions between Iran and Israel has reignited concerns among investors, prompting a flight to safety and triggering a sell-off in riskier assets, including cryptocurrencies.
The volatile nature of digital currencies has once again come to the forefront as geopolitical events continue to put influence on market sentiment and prices. As investors closely monitor developments in the Middle East, the cryptocurrency market remains under pressure, with uncertainties looming over its short-term outlook.
Analysts anticipate heightened volatility in the coming days as geopolitical tensions continue to unfold, underscoring the interconnectedness between global events and digital asset prices.
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