 ▲ Bitcoin (CG) |
Cryptocurrency prices, including Bitcoin, plunged shortly after the United States and Israel began striking Iran on the 28th (local time), Bloomberg reported.
According to the report, Bitcoin fell as much as 3.8% to $63,038 as of 6 a.m. New York time (8 p.m. Korea time) before trading around the $64,000 level.
Ethereum, the second-largest cryptocurrency by market capitalization, at one point tumbled 4.5% to $1,836.
Cryptocurrency data provider CoinGecko analyzed that approximately $128 billion in market capitalization evaporated from the digital asset market immediately after news of the airstrikes broke.
Susannah Streeter, head of investment and markets at Hargreaves Lansdown, said, “Given the extreme difficulty in predicting how the conflict will unfold, we are likely to see investors flocking to safe-haven assets such as gold again.”
The latest decline in Bitcoin comes as an extension of a weakening trend that has persisted for several months.
Bitcoin has undergone a sharp correction since about $19 billion in leveraged positions were liquidated last October. The cryptocurrency is currently down about 50% from its all-time high of $126,000 recorded in the same month.
Justin d’Anethan, head of research at Arctic Digital, explained, “A significant portion of the investment bubble has already dissipated and selling pressure has largely been exhausted, limiting the extent of the impact that shocks such as the Iran situation can have. This does not mean Bitcoin will not fall further, but rather that much of the volatility has already been absorbed by the market.”
Disclaimer: This article is for informational purposes only and does not constitute investment advice.