Bitcoin has witnessed a significant decline, falling to the $60,000 mark, amid escalating concerns about conflict in the Middle East after Iran launched a drone against Israel. Before this incident took place, the price of Bitcoin stood at $68,000.
The entire cryptocurrency market was hit hard, down about 10%, and the total market capitalization retreated to $2.38 trillion. With traditional financial markets offline over the weekend, the specific impact of this attack on common asset classes remains unclear.
Besides, many people believe that the decline in Bitcoin’s value is not simply due to the military move in Israel. Other factors including options expiration, historical Bitcoin halvings, macroeconomic fluctuations, and technical analysis chart weaknesses also contribute to this volatility.
The Israeli military has pointed out that Iranian Islamic Revolutionary Guard Corps drones need time to reach Israel, and next week will be an important time to more clearly assess the impact of tensions current straight to the price of Bitcoin and other assets.
Among the top cryptocurrencies, Polygon, Shiba Inu, Avalanche and Dogecoin have suffered the most, with drops of up to 20% in the past day. Although interest in cryptocurrencies remains high, market participation has shown signs of cooling, reaching its lowest level in the past month as reported by CMC. Bitcoin’s volatility index has skyrocketed, from around 69 to nearly 78.9 in just one day.
Related: Bitcoin’s Price Drop, Cryptocurrency Market into a “Bear Market”
Although the market is in a bearish phase, some analysts are still optimistic about the possibility of recovery. Tony Gallippi, co-founder of BitPay, expressed his belief that the market could soon witness a new price increase. Along with that, many experts and founders of other cryptocurrency projects are also optimistic about the future, especially thanks to the upcoming Bitcoin halving, an event that is predicted to stimulate a wave of new price increase for the market.
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