Bitcoin nosedives 7% as geopolitical tension in Middle East escalates, altcoins follow

BTC corrects amid war tensions: Bitcoin corrected downwards by 7.1 per cent to $62,346 at 20:31 GMT on Saturday with a decline of $5,050 within 24 hours. This marks leing cryptocurrency to lose a 15.8 per cent of its price from year-high of $73,794 recorded on March 14th. However, after a strong correction, Bitcoin has recovered above $64,000 mark with investors investing in currency amid strong halving speculations. 

nosedive in Bitcoin prices is being attributed to Iran’s attack on Israel that has escalated geopolitical tensions in Middle East. Israeli army reported that Iran h launched multiple drones into Israeli territory, while Iran's Revolutionary Guard simultaneously took responsibility for missile strikes against Israel. scale of alleged attacks is huge, with nearly 150 missiles and 600 suicide drones reportedly used. 

Bitcoin’s value dipped from approximately $67,000 to $61,625, erasing more than $130 million in market capitalisation within minutes following incident.

Strong decline in crypto volumes | Image credit: CoinGlass

massive selloff in Bitcoin is followed by strong corrections in Ereum, BNB, Solana, XRP, Dogecoin, Cardano, Avalanche, Shiba Inu, Bitcoin Cash, and Polkot, all of m down by close to 5 per cent in last 24 hours. 

90 of top 100 cryptos by market capitalisation are currently tring in red | Image credit: CryptoBubbles 

crypto fear and Greed Index have also recorded a month low as investors move towards moving ir investments towards stable investments such as gold and bonds amid escalating geopolitical instability. 

Crypto Fear and Greed Index | Image credit: CoinMarketCap 

However, crypto market has shown a strong recovery after nosedive as strong anticipation around halving is inviting investors to make new positions at a significantly lower price. 

Furr escalating tensions, Jordan on Sunday opened its airspace for Israeli military in a bid to intercept and shoot down Iranian drones and missiles. Jordan's unexpected move is seen as a direct violation of Iran's warnings. Even Western allies in Middle East, including Qatar and Kuwait, banned use of ir airspace against Iran.

If tension escalates furr in Middle East, a clear effect on prices of Bitcoin will be seen in coming days, right before Bitcoin halving which is expected to take place on 19 April 2024.