Bitcoin, Ethereum, and Solana experience sharp declines as geopolitical tensions between Iran and Israel disrupt the crypto market. Bitcoin fell below $62,000, while Ethereum dropped under $2,500.
Uptober bull rally in jeopardy
At the start of crypto’s Uptober (October) Iran launched missiles at Israel, potentially signaling the escalation of the conflict in the Middle East. Historically, geopolitical wars have led to market downtrends. In 2022 crypto saw the coldest winter as Russia invaded Ukraine.
With that in mind, investors have been quick to pull out money from volatile assets. The potential for military escalation, economic sanctions, and disruptions to global supply chains have led to the current market decline.
Despite being hailed as an ideal safe-haven asset, Bitcoin’s performance throughout the crisis has prompted concerns about cryptocurrencies’ resilience in times of global chaos.
The fate of Bitcoin and Ethereum is still unknown; much depends on the geopolitical scene’s change. Also, the upcoming US elections between Kamala Harris and Donald Trump will play a huge role in Bitcoin’s future.
While creating BTC, Satoshi Nakamoto planned to create a currency far above the reach of governments. The 2007-2008 great depression fuelled Satoshi’s need for secure assets under all regimes. That should have worked fine. But, he did not account for the psychology of traders and their response to external factors such as this war.
