On June 12, the price of the first cryptocurrency and Ethereum fell following reports of Israeli airstrikes on Iran. The escalation of the conflict has led to an outflow of investors from risky assets.
In the last 24 hours, bitcoin has fallen by 3.6%, dropping below the $104,000 level. At the time of writing, the asset is trading at $103,970.
The market decline followed reports from the Associated Press about explosions in Tehran. An unnamed Israeli military official confirmed that the targets of the attacks were Iran's nuclear and military infrastructure.
According to CNN, Israeli Defense Minister Israel Katz declared a state of emergency in the country. He stated that "a missile and drone attack is expected in the near future" as a retaliatory measure.
Amid these events, oil prices rose by more than 7%. The benchmark American grade West Texas Intermediate increased to $71.94 per barrel. The international standard Brent rose to $73.16 per barrel.
LVRG Research director Nick Rak stated in a comment to The Block that the pressure on cryptocurrencies is related to investors moving to safer instruments.
Presto Research analyst Min Jung also linked the sell-off in the digital asset market to the strikes on Iran. He noted that oil prices exceeded $70 for the first time in three months.
Recall that on June 9, the price of the first cryptocurrency exceeded $107,000 against the backdrop of capital outflows from spot ETFs and news of unrest in the USA.
