Bitcoin fell by $4,000 due to the conflict in the Middle East

Bitcoin prices dropped following the escalation of the conflict in the Middle East, but there's nothing new about that.

Bitcoin fell by $4,000 due to the conflict in the Middle East

The price of Bitcoin dropped by nearly $4,000 in less than 24 hours following an Iranian missile strike on Israel on the evening of October 1st.


On Tuesday, the asset was trading at just over $64,000, but after the attack, it sharply dropped to a low of just above $60,000.


Since then, BTC has recovered to around $61,700 during morning trading in Asia on Wednesday, but it remains down by 3% for the day.


According to the Bitcoin Fear and Greed Index, market sentiment has quickly shifted from "greed" a few days ago to "fear" today.


However, this is not new, and the panic sell-off is largely irrational behavior. Some may call Bitcoin a "safe haven" asset, but it has previously shown similar behavior during times of geopolitical tension.


BTC fell more than 13% over a few days after the Iranian drone strike on Israel in mid-April. In contrast, commodities such as gold and crude oil are rising today.


The specter of war in the Middle East has shaken the entire cryptocurrency market, with total market capitalization dropping by 4.7% in a day, or roughly $150 billion. According to CoinGecko, it now stands at $2.26 trillion.


Ethereum fell by nearly 8%, dropping to $2,450 before seeing a slight recovery during Asian trading on Wednesday.


As usual, altcoins suffered even greater losses, with the biggest drops seen in Dogecoin (DOGE), Toncoin (TON), Avalanche (AVAX), Shiba Inu (SHIB), Chainlink (LINK), and Polkadot (DOT).


In other words, it's the same old story for cryptocurrencies and the same panic among those with little confidence in this asset class.



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