Overnight Saturday, the cryptocurrency market experienced significant selling pressure following an unprecedented Iranian drone and missile assault on Israel. Bitcoin, a leading digital currency, plummeted approximately 8% late Saturday as U.S. authorities confirmed the unfolding attack. Amid heightened Middle East tensions, digital assets emerged as one of the few risk assets being traded over the weekend, with the decline viewed as an immediate response to the escalation in geopolitical hostilities.
Bitcoin, which had been trading around $70,000 on Saturday evening, tumbled to below $62,000, as reported by data from the Bitstamp exchange. However, by Sunday morning, it had partially recovered, reaching levels above $64,000. Concurrently, other cryptocurrencies like ether also witnessed substantial selling pressure, experiencing declines of up to 10% in certain instances.
The sell-off in bitcoin marked its most significant decline in over a year, according to Bloomberg. This downturn occurred despite recent record highs, driven by increased inflows into U.S. spot bitcoin exchange-traded funds (ETFs) which have been instrumental in shaping the cryptocurrency’s price movements.
Meanwhile, the Middle East region experienced unprecedented events as the night unfolded, with an Iranian attack directly targeting Israel from its territory for the first time. Israel reported identifying and neutralizing approximately 99% of the 300 identified threats posed by various means, underscoring the severity of the situation.
The onslaught of drones and missiles on Israel was purportedly in retaliation for a suspected Israeli strike that resulted in the deaths of top Iranian officials in Syria.
Furthermore, the Iranian currency faced significant devaluation, reaching a record low of 705,000 rials per USD on the unofficial market by 10:30 a.m. local time on Sunday, as reported by data from the foreign exchange monitoring site Bonbast.
Additionally, the Tel Aviv Stock Exchange’s primary index, the TA-35, experienced a 0.38% decline at 10:23 a.m. London time, reflecting the broader market sentiment amidst the unfolding geopolitical tensions.
