Israel’s response attack fails to dampen crypto market, which gains over $100 billion
In spite of escalating tensions in the Middle East, the global cryptocurrency market saw a significant surge in prices. Early morning on April 19, Israel launched a retaliatory strike against Iran, which raised concerns about geopolitical uncertainties. This kind of regional conflict typically leads to market volatility, and in the initial hours following the news, leveraged traders lost over $300 million.
However, the crypto market quickly recovered as it became evident that there was minimal damage from the retaliation. As of press time, the total market capitalization for cryptocurrencies stands at $2.35 trillion, representing an influx of over $100 billion or more than 4% compared to the previous day’s figure of $2.25 trillion.
Bitcoin experienced a sharp decline and subsequent recovery on April 19, coinciding with reports of the Israeli strike. Initially, Bitcoin’s price dropped to $61,850 due to the geopolitical events. However, as news emerged suggesting limited damage from the strike, market sentiment shifted, leading to a swift rebound. At present, Bitcoin has not only recovered from its dip but has also surpassed its pre-conflict price. It is currently trading at $64,711, representing a nearly 5% increase in the past 24 hours.
Ethereum also attempted a recovery but faced resistance around the $3,100 level, similar to Bitcoin. The bearish market participants defended this level, resulting in a decline that breached the $3,000 boundary and even dipped below the critical support level of $2,900. However, Ethereum managed to rebound from a low point of $2,867 and is currently trading at around $3,099, marking a 1.28% increase in the past 24 hours.
Despite the geopolitical tensions and uncertainties, the cryptocurrency market demonstrated surprising resilience. Bitcoin not only recovered but also surpassed its pre-conflict price, potentially driven by expectations surrounding the upcoming Bitcoin halving event. While Ethereum experienced some volatility, it ended the day with a modest gain.
However, with the BTC halving event approaching and uncertainty surrounding the future of cryptocurrencies, the direction of the market remains uncertain. It is important to note that the content on this site should not be considered investment advice, and investing in cryptocurrencies carries risks.