Cryptocurrency: Iran’s Attack on Israel Causes Bitcoin Havoc

DBitcoin quickly recovered from the shock caused by the escalation of the Israeli-Iranian conflict on Sunday. Recently, almost $67,000 was paid for the oldest and most famous cryptocurrency on the Bitstamp trading platform. This was slightly less than on Friday evening. Bitcoin fell to just over $61,000 on Saturday.

The Iranian army attacked Israeli targets with about 300 missiles and drones. The Israeli military said it successfully repelled the attack. Israel enjoyed the support of the United States, Great Britain, France and Jordan. We can expect a military response from Israel. Warnings were heard around the world about further escalation of the conflict.

Rest on feet of clay

Regarding Bitcoin price developments, experts are warning against composure despite the rapid easing. “With ongoing tensions, the current recovery movement has feet of clay,” market analyst Timo Emden of Emden Research wrote on Sunday. It remains to be seen how investors will react to the events of early next week and how long the political markets will be. According to the expert, if the situation is resolved faster than expected, investors may buy crypto assets again. “Getting back to the 70,000 mark will make a big difference in that context.”

On the other hand, in the event of further escalation of the conflict, there is a risk of the price falling below the psychologically important level of $60,000. In addition to geopolitical uncertainty, market debate is fueled by concerns about a delay in US interest rates.

“The Bitcoin halving also continues to cast its shadow,” Emden said. During this event, the reward for mining new Bitcoins is halved, which has often caused prices to rise in the past. As a result, fewer new bitcoins come into circulation, so the supply grows more slowly.

Source: Frantfurter Allgemeine

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