Bitcoin Plummets as Iran Attacks Israel, Geopolitical Tensions Rattle Crypto Market

Iran Initiates Attack on Israel
Bitcoin Plummets as ‘Risk Asset’
Rises Again on News of Hong Kong ETF Approval

The price of cryptocurrencies plummeted across the board as Iran launched indiscriminate airstrikes on Israel.

At 6 a.m. on the 14th, Bitcoin’s price was around $61,000, marking the first significant drop since the 24th of last month.

The news of Iran initiating an attack on Israel, which was reported an hour ago, is the reason for the drop. Just minutes after the attack, Bitcoin dropped $6,000.

This situation has caused traders to suffer significant losses. According to data from CoinGlass, losses amount to around $962.4 million.

Iran launched an attack on Israeli ships and bombarded Israel with 100 drones in response to Israel’s attack on the Iranian consulate in Syria.

Experts analyze that the price of Bitcoin plummeted due to ‘geopolitical instability.’

Unlike stocks or bonds, cryptocurrencies are considered a typical risk asset, meaning an investment asset that does not guarantee a fixed return.

Bitcoin is considered a more risky asset, so it’s one of the first to be sold when investors get nervous.

Other cryptocurrencies, such as Ethereum and Binance Coin, dropped more than 8% that day.

On the other hand, the price of gold, a safe asset, is soaring. On the 15th, it was $2,355, up 0.45% from the previous day.

The U.S. dollar, also perceived as a safe asset, shows strength.

On the 15th, the won-dollar exchange rate closed at 1,384 won, up 8.6 won from the previous trading day. Based on the closing price, it hit a high for the first time in 17 months since November 8, 2022.

Experts predict that the won-dollar exchange rate will break through 1,400 won sooner as conflicts in the Middle East intensify.

Meanwhile, on the 15th, Hong Kong officially approved the first physical exchange-traded fund (ETF) for Bitcoin and Ethereum.

Amidst the international political instability, the price of Bitcoin rose sharply again with the approval of the ETF.

As of 6:43 p.m. on the same day, it is trading at approximately 98,982,000 KRW, up 0.08% from 24 hours ago.

Bitcoin is approaching a halving event on the 20th. A halving is an event where the mining reward decreases every four years, reducing the supply of Bitcoin.

With this halving, another price increase is predicted.