The post Bitcoin Plunges Amid Israel-Iran Missile Conflict, Highlights Geopolitical Sensitivity appeared on BitcoinEthereumNews.com.

Tuesday observed significant fluctuations in Bitcoin prices, coinciding with missile strikes in Israel. Iran, previously warned by the U.S., was accused of preparing ballistic missile attacks against Israel, further escalating tensions. As a result, Bitcoin dropped 3.2% to $61,300, before recovering slightly to $62,200, marking its lowest in two weeks. Bitcoin prices plummet amidst geopolitical unrest, reflecting volatility and investor sentiments. Discover the recent developments and their implications. Geopolitical Tensions and Crypto Volatility The geopolitical instability triggered by missile strikes on Israel significantly impacted Bitcoin’s valuation. This fluctuation underscores the vulnerability of cryptocurrencies during heightened geopolitical events despite Bitcoin’s reputation as a hedge against inflation. The decline to $61,300 — a stark 3.2% drop — followed by a marginal recovery to $62,200, marks Bitcoin’s lowest trading value in two weeks. Bitcoin’s Performance Amid Political Crises Despite being hailed as a ‘store of value’ asset, Bitcoin’s behavior during geopolitical crises remains inconsistent. According to Zach Pandl, Director of Research at Grayscale Investments, investors currently facing high geopolitical risks tend to favor traditional assets like physical gold and U.S. Treasuries. Pandl contends that Bitcoin’s correlation with risk assets might evolve as global adoption increases, potentially positioning it as a common safe-haven asset in the future. Investors’ Flight to Traditional Safe-Haven Assets The geopolitical unrest not only influenced Bitcoin but also saw shifts in other markets. With the escalation between Israel and Iran, there was a noticeable uptick in WTI crude oil prices by 3.6%, surpassing $70 per barrel. Additionally, the U.S. Dollar Index (DXY) rose by 0.5%, reversing the recent period of weakness. Gold also experienced an increase of 1.3%, reaching $2,670 per ounce. Conversely, stocks and leading cryptocurrencies saw declines. Potential Shifts in Federal Reserve Policies Pandl opines that despite the current fluctuations, the Federal Reserve is likely to maintain its…

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Filed under: News - @ October 1, 2024 10:16 pm