Bitcoin’s (BTC) price has dropped by more than 7% and current market data shows that the leading digital asset by market capitalization is trading at $62,649.63.

Bitcoin Price Extends Its Bearish Drawdown

Prices of cryptocurrencies including Bitcoin and Ethereum (ETH) have dropped significantly after it was announced by the Israeli military that Iran had attacked the country by launching “dozens” of drones. 

Before the news came into the limelight, Bitcoin price was trading at $68,000 before plunging to $62,000. This implies a huge loss of about $6,000 within a few hours. Ethereum, on the other hand, saw a price dip of 10% and is now trading at $2,892.97.

Bitcoin price 1D Chart. Source: CoinMarketCap

Binance Coin (BNB), Solana (SOL), and other tokens have seen up to a double-digit drop in price within a few hours. Generally, the broader crypto market is down by more than 8% with a combined crypto market cap hitting a low of $2.38 trillion. Seeing that traditional financial markets are closed on Saturdays, it is not yet certain how the attack on Israel must have impacted the mainstream assets. 

On one hand, it is strongly believed that the drop in Bitcoin price is driven by some factors apart from the drone launch in Israel. There the options expiry in the market, historical bearish Bitcoin halving patterns, macroeconomic factors, and even technical chart weakness. 

While these explain the Bitcoin price slump, the contagion has stirred a bearish trigger that forced altcoin price slumps.

Israel-Iran War Escalates

For the geopolitical mayhem, the Israeli military says the drones from Iran’s Islamic Revolutionary Guard Corps (IRGC) will take some time to reach Israel. 

It is worth noting that Israelis had previously launched an attack on the Iranian consulate in Syria, a move that killed seven IRGC members. Iran’s latest drone launch is a retaliatory attack on Israel.

Israel appears to be ready for a direct attack from Iran as Defence Minister Yoav Gallant said the country was “closely monitoring a planned attack” against it by Iran and its allies in the region. These distraught nations are beginning to utilize different approaches including the use of Artificial Intelligence (AI) to carry out their terrorism schemes against each other.

Next week will determine what the impact of the current escalation will have on Bitcoin price and other assets.

The post Bitcoin (BTC) Price Erases $6,000 As Israel – Iran Conflict Escalates appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am