Bitcoin Falls to $60000 Amid Iran Israel Conflict

Bitcoin Falls to $60000 Amid Iran Israel Conflict

Bitcoin experienced a decline to approximately $60000 on Wednesday following Iran's missile strikes on Israel. This action was described as retaliation for Israel's recent attacks that resulted in the deaths of militant leaders and its military operations against Hezbollah in Lebanon.

Growing fears of a wider regional conflict involving Iran and the United States have intensified as Israel increases its military actions in Lebanon. Bitcoin fell by 31 percent to around $61616 for the day and has seen a drop of 44 percent over the past week. This decrease reflects rising uncertainty and heightened risk aversion in financial markets due to the geopolitical tensions, leading investors to sell off riskier assets such as cryptocurrencies.

In response to the escalating situation the White House has deployed US military support to reinforce Israel's defense. Reports indicate that President Joe Biden and Vice President Kamala Harris were briefed in the White House Situation Room while US naval destroyers assisted in intercepting most Iranian missiles. However Israeli military spokesman Daniel Hagari noted that some missiles did successfully hit their targets.

The crypto market has reacted sharply to the tensions between Iran and Israel. Mitchell Nixon chief research officer at Imperial Wealth commented that the current decline in Bitcoin prices resembles past downturns in April and July which were also influenced by rising Middle Eastern tensions that triggered sell-offs in crypto assets.

On September 30 Bitcoin spot exchange-traded funds (ETFs) recorded net inflows of $612 million marking an eight-day positive trend. However on October 1 the situation reversed with significant outflows totaling $2425 million according to data from SoSoValue. In a similar vein Ethereum spot ETFs reported an outflow of $822300 on September 30 which worsened to $4852 million on October 1.

Beyond geopolitical issues Nixon noted that traders were also taking profits ahead of the upcoming Federal Open Market Committee meeting. Data from CoinGlass revealed substantial outflows from major cryptocurrencies including Bitcoin Ethereum and Solana with sellers outnumbering buyers in the current market environment.

Despite these ongoing tensions Nixon emphasized that Bitcoin closed September at its strongest level in over a decade a significant milestone not seen since before 2013.