Cryptocurrencies, including bitcoin, experienced a significant downturn as reports emerged of Israeli strikes on Iran. Bitcoin slid more than 5.5% to $59,961, while Ether also fell below the $3,000 mark to $2,895 during the Asia session. The market reacted swiftly to news of the attack, with investors flocking to safe-haven assets like gold, oil, and bonds. However, as details unfolded and tensions remained high, these assets retreated from their initial highs, leaving markets in a state of uncertainty.
Amidst the turmoil, bitcoin’s anticipated ‘halving’ event added another layer of complexity to the market dynamics. Scheduled for Friday, the ‘halving’ marks a significant change to bitcoin’s technology, aimed at reducing the rate of new bitcoin creation. Despite the dip, bitcoin showed resilience, rebounding to $62,300 later in the day, though still down 2%. Similarly, Ether also recovered, rising back above the $3,000 threshold, highlighting the volatile nature of cryptocurrency markets amidst geopolitical tensions.
