Crypto News – Following an unusual battle between Iran and Israel over the weekend, geopolitical tensions increased substantially. Global markets, including the cryptocurrency sector, were briefly rocked by the events of Saturday night.
The Market Recovers after Collapsing in the Iran-Israel Tension
Nonetheless, as of the time this piece was written, the cryptocurrency market has clearly recovered. The market’s readiness to withstand unanticipated global events is demonstrated by the speedy recovery of cryptocurrency values.
The largest cryptocurrency, Bitcoin, had a severe decline due to concerns about the tensions getting worse. During the crisis, the price of Bitcoin fell as low as $60,800. This decline, according to cryptocurrency researcher Ash Crypto, is a response to what is anticipated to happen in the event of war: increased commodity prices, such as those of gold and oil. Central banks are less likely to decrease interest rates as a result of those repercussions, which raise inflation.
Similar Declines were Experienced in the Pandemic
Ash Crypto claims that the current state of affairs makes both stocks and cryptocurrency assets gloomy. As mentioned by Ash Crypto, there were comparable sell-offs at the beginning of the Russia-Ukraine conflict and the COVID-19 pandemic in 2020.
Once BTC and alts started crashing, those who had high leverage positions open started getting liquidated, which resulted in more forced selling,
Ash Crypto
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