The price of bitcoin has fallen by nearly four thousand dollars in less than 24 hours following the Iranian missile attack on Israel.
The largest cryptocurrency was trading at just over $64,000 on Tuesday, but the price dropped to just above $60,000 after the attack. Bitcoin has since recovered to around $61,900, but it is still down by more than three percent in the last 24 hours.
No Room for Panic
Market sentiment has quickly shifted from ‘greed’ a few days ago to ‘fear’ today, according to the Bitcoin Fear and Greed Index.
However, this is nothing new, and panic selling is largely irrational behavior. Some may label bitcoin as a ‘safe haven’ asset, but this has been disproven in previous instances during geopolitical tensions.
Bitcoin fell by more than 13 percent in the days following the Iranian drone attack on Israel in mid-April.
In contrast, commodities like gold and crude oil are rising today. Bitcoin pioneer Samson Mow noted the irony in this.
Analysts do not seem concerned as bitcoin remains within its six-month range despite this sell-off.
Veteran trader Peter Brandt observed that the recent rise has not disrupted the sequence of lower highs and lower lows. – Only a close above $71,000 confirmed by a new all-time high would mean that the trend from the lowest level in November 2022 remains intact – he added.
Meanwhile, analyst IncomeSharks predicted another drop before a rise later this month referred to as ‘uptober’ in the crypto community.
The specter of war in the Middle East has shaken the entire crypto market, with total capitalization falling by 4.7 percent in a day, or about $150 billion. It currently stands at $2.26 trillion, according to CoinGecko.
