Cryptocurrency market falls as Iran launches missile attack on Israel; Bitcoin falls to $62,000. Ethereum falls below $2,500; global cryptocurrency market capitalization declines by 2.72% to $2.18 trillion
The global cryptocurrency market is witnessing a drop in value following reports that Iran fired a missile at Israel.
Rising geopolitical tensions have sent shockwaves through financial markets around the world, and crypto assets have taken a hit.
As news of the missile attack spread, the cryptocurrency market reacted quickly. Bitcoin (BTC), the largest cryptocurrency by market capitalization, had fallen to $61,932.92 at the time of writing. Ethereum (ETH), the second largest cryptocurrency, plunged 3.42%, dropping its price below $2,499.30.
Often the more volatile altcoins are Alweave (AR), Notcoin (NOT), Gala (GALA), and Worldcoin (WLD), which have hit double digits as investors rushed to unload risky assets. It fell and experienced an even steeper decline.
Due to the market crash, the global cryptocurrency market capitalization decreased by more than 2.72% to $2.18 trillion.
The decline in cryptocurrency prices highlights the market's sensitivity to geopolitical events. Although historically seen as a hedge against inflation and economic uncertainty, cryptocurrencies have not proven immune to geopolitical shocks.
Investors, spooked by widespread regional instability and fears of its potential impact on global markets, moved to safer assets such as gold, where prices rose.
The attack marks a serious escalation in the already volatile Middle East region. The Iranian missile launch was reportedly in retaliation for Israel's operation in Lebanon that led to the removal of the Hezbollah leader.
But Israel has vowed to defend its territory and has responded quickly, raising concerns of an impending large-scale conflict.
Although the full extent of the conflict's impact remains unclear, the continued instability in the Middle East is likely to keep the cryptocurrency market under stress in the coming days.
Traders and analysts are currently closely monitoring both diplomatic developments and market reactions.
