Current price of Bitcoin: drops to $104k as the Israel-Iran conflict ignites a risk-off sentiment
On Friday, Bitcoin prices dropped due to rising tensions in the Middle East after Israel’s extensive airstrikes on Iranian military and nuclear sites, which prompted a widespread move away from risk assets.
As of 02:14 ET (06:14 GMT), the world’s largest cryptocurrency dropped 3.6%, reaching $104,070.20.
Crypto is impacted by risk-off sentiment amid Israeli strikes on Iran
To thwart Tehran’s nuclear ambitions, Israel initiated “Operation Rising Lion,” aimed at numerous Iranian facilities, such as uranium enrichment sites in Natanz, missile production plants, and command centers in Tehran.
As explosions echoed throughout Tehran, Israel implemented emergency measures and Iran’s air-defense systems were activated.
Iran promised severe reprisals and cautioned that its response could jeopardize regional stability.
In a recorded video, Israeli Prime Minister Benjamin Netanyahu declared that the military campaign would persist “for as many days as it takes to remove this threat,” and he urged citizens to prepare for a possible Iranian retaliation.
The escalation in the Middle East caused a flight to safety across various asset classes. Traditional safe havens such as gold, the U.S. dollar, Japanese yen, Swiss franc, and Treasuries experienced a surge, while cryptocurrencies, regarded as risk-sensitive assets, plummeted.
With the impending U.S. central bank rate decision scheduled for next week, institutional caution during periods of political instability was heightened.
The expectation is for the Fed to maintain the current rates, while markets are factoring in possible rate reductions later this year.
Traders will closely monitor Iran’s reaction, which may involve disruptions at the Strait of Hormuz. As long as there is no improvement in geopolitical clarity, the crypto sector may remain linked to the sentiment regarding global risk.
Crypto price today: most altcoins slip over 10% amid broader sell-off
Most altcoins also nursed steep losses, tracking losses in the biggest cryptocurrency amid a broader risk-off mood.
World no.2 crypto Ethereum slumped 9.8% to $2,497.82.
World no. 3 crypto XRP slid 8% to $2.0988.
Solana plunged 10.4%, while Cardano also declined nearly 10%, and Polygon slipped 10.4%.
Among meme tokens, Dogecoin tumbled 10%, while $TRUMP lost 6.5%.
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