Crypto markets plunge amid rising Middle East tensions
Bitcoin and Ethereum saw sharp declines late Thursday following reports that Israel carried out airstrikes on Iran, escalating geopolitical tensions and triggering a sell-off in digital assets.
Bitcoin falls below $104,000, Ethereum sinks 10%
Bitcoin price dropped 4.7% over the past 24 hours, sliding to $103,802, while Ethereum plunged 10% to $2,497. The sudden move came after explosions were reported in Tehran and an Israeli military official confirmed strikes targeting Iran’s nuclear and military infrastructure.
Israel declares emergency, expects immediate retaliation
Following the strikes, Israeli Defense Minister Israel Katz declared a state of emergency. He warned of an imminent missile and drone attack on Israel’s civilian population, according to CNN. These “preemptive strikes,” as described by the Israeli government, have heightened fears of a broader conflict in the Middle East.
Oil prices soar as risk assets tumble
The geopolitical shockwaves rippled through global markets. Crude oil prices surged, with U.S. benchmark West Texas Intermediate rising 7.23% to $72.98 per barrel, and Brent crude climbing 7% to $74.23.
Investors flee crypto for safer assets
The escalating conflict has intensified risk aversion in the crypto market. “Increased geopolitical risk has prompted a shift toward safer assets, with market participants anticipating near-term pressure on crypto valuations,” said Nick Ruck, director at LVRG Research.
Min Jung, a research analyst at Presto Research, added: “Oil prices have surged past $70 per barrel for the first time in three months, and the crypto market is selling off sharply.”
