Last updated on April 16th, 2024 at 03:12 pm
The geopolitical tussle between Iran and Israel has taken a drastic turn, affecting Bitcoin and the whole crypto market trajectory, with a bearish wave hitting with a thud. U.S. President Joe Biden stands strong with a counter-attack plan for Iran if the attack persists.
Bitcoin and Ethereum major tumble.
Bitcoin and Ethereum, the first and second largest digital assets by market cap, fell by 4.2% and 6.7%, respectively, according to data from Coinstats.
A 5.75% loss was experienced in the broad crypto realm, with altcoins like Solana facing a massive 20% loss, according to Coinmarketcap.
Background of the Geopolitical Fuss
According to reports from Bloomberg, Iran released a drone attack on Israel, which is a reenactment of earlier ambush missiles on Iran. Aljazeera reported approximately 300 drones and missiles launched from Yemen, Iraq, and Iran, showing the intensity of this feud.
The missile attacks have caused over 33,000 deaths, airspace closures, and a broader economic downturn as people run for safety. The Middle Eastern economy has broadly faced a downturn as neighboring countries face the risks of the conflict, which started on April 1. The U.S. White House stated its preparation for an attack on Iran, which is said to be backed up by Russia, a titan in war ammunition.
CNN predicted a harsh global economic turn if oil and gas prices rose surpassing the current inflation levels. The Dow Jones Industrial Average, Nasdaq 100, and S&P 500 Index also faced their fair share of losses, showing intensity in the issue if it lasts. Such losses are triggered by investors and traders rushing to liquidate their positions out of fear of sudden market plunges.
Israel, a heavy exporter of diamonds, integrated circuits, refined petroleum, medical instruments, and potassium fertilizers, will impact the prices of these commodities amid the tussle.
Iran stands with ethylene polymers, refined copper, acyclic alcohols, raw aluminum, and petroleum gas as its exports, which stand to rise if the war does not end soon.
Such geopolitical conflicts have earlier seen inflation in the Russia versus Ukraine conflict, which saw inflation in the broader global economy.
Amidst the awaited Bitcoin halving event scheduled between April 18th and April 20th, supposed to limit BTC availability, one can only hope digital assets stand strong and provide the necessary value amid this catastrophe.
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