The global cryptocurrency market has experienced its steepest decline in a month, shedding nearly $164 billion in value over the past 72 hours, following escalating geopolitical tensions in the Middle East. According to Al-Seyassah daily, this significant drop coincided with Iran’s missile strikes on Israel, sparking widespread fear across global financial markets.
The overall market capitalization of cryptocurrencies fell by 7%, shrinking from $2.338 trillion to approximately $2.174 trillion in a short span, as investors reacted to the uncertainty caused by the conflict.
Bitcoin Leads the Decline
Bitcoin, the world’s largest cryptocurrency by market value, led the market downturn, experiencing a 3.4% drop. Bitcoin’s price slid to $61,773 during the past 72 hours, reflecting a weekly loss of 3.2%. This decline reduced Bitcoin’s market capitalization to $1,220.8 billion, representing 56.15% of the total cryptocurrency market.
Market analysts attribute Bitcoin’s decline to the heightened geopolitical risk, as traders and investors adjust their portfolios amid the ongoing conflict. The uncertainty surrounding the Middle East crisis has heightened concerns about global financial stability, making the crypto market particularly vulnerable.
Ethereum Suffers Steeper Losses
Ethereum, the second-largest cryptocurrency, faced even steeper losses compared to Bitcoin. It saw a 6% drop in recent trading sessions, pushing its price down to $2,479. Over the past week, Ethereum has recorded a total decline of 5.5%, further highlighting the impact of geopolitical turmoil on the market.
As Ethereum’s market capitalization continues to shrink, the broader cryptocurrency market remains volatile. With investors becoming increasingly cautious, many are rethinking their strategies, as geopolitical risks continue to weigh heavily on digital assets.
Geopolitical Events Trigger Market Volatility
The recent plunge in cryptocurrency prices underscores the sensitivity of digital assets to external geopolitical events. The missile strikes between Iran and Israel have caused a ripple effect in global markets, leaving traders uncertain about the near-term prospects for cryptocurrencies.
Financial experts are warning that as geopolitical tensions remain elevated, the crypto market could experience further volatility. “The market reaction to the Middle East crisis is a clear indication of how interconnected geopolitical events are with financial assets, particularly in the digital space,” one analyst commented.
In light of the recent losses, traders and investors are reassessing their strategies, with many opting for a more cautious approach as uncertainties continue to mount. The future direction of the cryptocurrency market remains uncertain, and much will depend on how the geopolitical situation unfolds in the coming days.
As tensions in the Middle East persist, the market outlook for cryptocurrencies remains volatile, and traders are bracing for further fluctuations in the days ahead.
