$BTC

Bitcoin prices fell on Friday due to rising tensions in the Middle East, following Israel's large-scale airstrike on Iranian nuclear and military facilities, triggering a massive flight from risk assets.

The world's largest cryptocurrency dropped 3.6% to $104,070.20 at 13:14 WIB.

Cryptocurrency hit by risk-off sentiment as Israel strikes Iran

Israel launched "Operation Rising Lion," targeting dozens of Iranian facilities, including uranium enrichment sites in Natanz, missile production plants, and command centers in Tehran, to preempt Tehran's nuclear ambitions.

Explosions echoed throughout Tehran, triggering a state of emergency in Israel and activating Iran's air defense systems.

Iran vowed to carry out severe retaliation and warned of a response that could threaten regional stability.

Israeli Prime Minister Benjamin Netanyahu stated in a video recording that the military campaign would continue "for as many days as needed to eliminate this threat," and urged citizens to prepare for a possible Iranian response.

Middle Eastern escalation triggered a flight to safety across asset classes. Traditional assets such as gold, the US dollar, Japanese yen, Swiss franc, and government bonds surged, while cryptocurrencies, seen as risk-sensitive assets, fell sharply.

Institutional caution during a period of political instability was heightened by the US central bank's interest rate decision, which is set to be announced next week.

The Fed is expected to keep interest rates unchanged, with markets anticipating a potential rate cut by the end of this year.