• Bitcoin falls 3.42% to $104,283.60 amid Israel-Iran strikes.

  • $335M liquidated in crypto market in just 60 minutes.

  • Iraq closes airspace after explosions near Baghdad and Tikrit.

  • BlackRock’s $160M Ethereum buy fails to halt market decline.

  • Crypto market faces ongoing volatility as Middle East tensions rise.

Bitcoin Price Crashes Amid Middle East Tensions

Bitcoin plunged to $104,283.60, down 3.42% in 24 hours, after hitting a high of $110,000 just a day ago. The sharp decline follows heightened geopolitical unrest in the Middle East, with Israel launching strikes on Iran. Over $335 million in crypto market positions were liquidated in the past hour alone, amplifying the sell-off.

The crypto market faced intense pressure as global risk assets recoiled. Investors fled to safer havens like gold and bonds, leaving cryptocurrencies vulnerable. The entire market saw significant losses, with major coins like Ethereum, Solana, and Cardano also declining sharply.

Escalating Conflicts Disrupt Global Markets

Israel’s airstrikes on Iran triggered immediate market reactions. Reports confirmed explosions near Tikrit and Kirkuk in Iraq, alongside attacks on the Iranian-Iraqi border. Ongoing rocket and missile activity near Baghdad International Airport prompted Iraq to close its airspace and halt all flights. Sources at the airport reported hearing continuous explosions, adding to the region’s volatility.

These developments fueled uncertainty, driving investors away from high-risk assets like Bitcoin. The crypto market’s rapid response underscores its sensitivity to geopolitical shocks, with liquidations exacerbating the downturn. Over $1 billion in crypto positions were wiped out in the past 24 hours, according to Coinglass data.

BlackRock’s Ethereum Purchase Fails to Lift Market

Despite the turmoil, BlackRock made headlines with a $160 million purchase of Ethereum, marking the highest ETF inflow in four months. The investment aimed to bolster confidence in digital assets, with the firm citing Ethereum’s potential as a hedge against economic uncertainty. However, the massive buy failed to offset the broader market’s decline.

Ethereum dropped below $2,500, reflecting a 9% loss in 24 hours. Other altcoins, including Solana and Cardano, saw declines of up to 5%. The crypto market’s total capitalization fell by 8%, signaling widespread investor caution.

Historical Context of Crypto Volatility

Cryptocurrencies have historically reacted sharply to geopolitical events. In April 2024, Bitcoin fell below $60,000 after earlier Israel-Iran tensions. Similar patterns emerged during the Russia-Ukraine conflict, where Bitcoin dropped 7% in a single day. Despite these dips, some experts argue digital assets often recover quickly, citing Bitcoin’s decentralized nature as a long-term strength.

BlackRock’s recent report emphasized Bitcoin’s role as a non-sovereign asset, potentially shielding it from traditional market risks. Yet, short-term volatility remains a challenge, as evidenced by the current crash. Investors are now watching key support levels, with Bitcoin at risk of testing $100,000 if tensions escalate further.

Market Outlook Amid Ongoing Uncertainty

The Middle East conflict shows no signs of abating, with Iran signaling potential retaliation. Iraqi airspace closures and reported explosions near key cities add complexity to the crisis. Global markets, including cryptocurrencies, face heightened volatility as investors brace for further developments.

Bitcoin’s immediate support lies at $99,883, with resistance at $105,000. A failure to hold current levels could push prices lower, while a de-escalation in tensions might spur a recovery. Ethereum’s outlook remains tied to broader market sentiment, despite BlackRock’s significant investment.

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