The cryptocurrency market lost some of its gains over the weekend with the escalation of tensions in the Middle East sending it down.
Dropping of bitcoin is a result of the latest Iranian strike
A massive fall, up to 8% in the price of the world’s most popular cryptocurrency, Bitcoin, occurred on Saturday evening. However, this was not because of any macroeconomic event, but just news leak that three Iranian drones and a missile had successfully attacked Israel. This Formation marked the worst decline experienced by Bit-coin in over a year, Bloomberg news reported. Besides the basket of the major cryptocurrencies like Ethereum which also faced a fall as some of them by 10% rounded off their impression on the investors.
The Price of Oil Volatility during an Exchange of Blows between Two Nations
The world’s crypto market is feeling volatile this Monday due to the uncertain trading just after the chaotic weekend in the area prone to geopolitical risks. Cryptocurrencies (which usually come with a reputation of being speculative assets) were the only assets to trade over the past weekend, when there were no other sectors left to perform.
Bitcoin Rebounds Slightly
Bitcoin, as expected, padded its losses and was in the green zone on Sunday morning having breached the crucial level of $64,000. On the other hand the bearings of these weekend events for markets aimed at cryptocurrencies reaffirm their sensitivity to the major overall events.
Iranian Currency Weakens as Well
Trade sanctions and oil export restrictions imposed on Iran, has a negative impact on the country’s economy, pushing Iranian currency to lose value.
Thus, the Iranian Rial also depreciated significantly, becoming the weakest currency among all trading pairs as opposed to the US dollar. Oil export is probably tied to the age-long conflict and its economic fallout.
Israel Stock Market Sees Minor Dip
The minor negative for the TASE (Tel Aviv Stock Exchange) is mostly believed to be due to the broader market dispersion with tech and growth stocks being underrepresented as compared to their weight in major indices.
The Tel Aviv Stock Exchange gave a less vivid response, with its main index struggling to symbolize a headway after its Monday morning session.
Uncertainties Remain
The tremor of the exposure has started to subside in the financial markets from the initial sudden and adverse effect of the Middle East conflict but the unpredictability of how far this crisis can affect cryptocurrencies and conventional investment sis yet to be settled.
