Cryptocurrencies, including Bitcoin, faced a sharp decline in value over the weekend amid reports of Iran launching missile and drone attacks on Israel. The escalating tensions in the Middle East led to a significant sell-off in the market as fears of a potential full-scale war between the two nations loomed large. Bitcoin’s price plummeted by 8.07% in response to the news, dropping from $67,132.1 to $61,710.58, signaling increased selling pressure in the market.
The recent price action marked the second consecutive day of losses for Bitcoin, following a 5% decline on Friday. This downward trend comes after a period of underwhelming performance, with Bitcoin recording a 12.51% loss in the past month. Despite reaching an all-time high price of $73,750.07 earlier in 2024, the cryptocurrency has struggled to maintain its bullish momentum in recent weeks.
The impact of geopolitical tensions in the Middle East was not limited to Bitcoin, as other major cryptocurrencies also experienced substantial losses. Ethereum, the second-largest cryptocurrency, saw a 10.89% drop in price, while tokens such as Solana, XRP, and Avalanche recorded losses of 12.68%, 18.11%, and 16.00%, respectively. This widespread decline in prices led to an overall decrease in the total crypto market cap, which fell to around $2.2 trillion.
Despite the recent market downturn, Bitcoin investors remain cautiously optimistic about the cryptocurrency’s future prospects. With the Halving event on the horizon, there is speculation that historical price data could point to a potential price surge in the coming months. Currently trading at $63,943, Bitcoin has shown a 3.61% gain from the weekend slump, with a daily trading volume up by 22.46% to $57.37 billion.
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