Cryptocurrency markets started declining on October 1st, fueled by tensions in the Middle East, particularly between Israel and Iran.
Market Impact of the Israel-Iran Conflict
Thus, market confidence was severely shaken after Iran conducted hundreds of missile strikes on Israel and subordinated the overall crypto market cap by 4%. The biggest crypto by market value, Bitcoin, was lower by 3.9%, trading below $6,120 after a high of $6,500 the previous week.
Other Cryptocurrencies Suffer Deep Declines
As for other top cryptocurrencies, they too suffered deep declines and were mainly southbound by the time the decline stopped. Ethereum, BNB, and Solana all dropped by between 6-7%, while tether and USD coins were trading below face value at $0.99 and $0.998 respectively but not as far from their face value as Bitcoin.
Crypto Mining Sector Also Affected
Still, the crypto-mining sector was not left out of the debacle either. According to sources from Yahoo Finance, stocks of prominent Bitcoin mining companies like Marathon Digital, and CleanSpark fell by almost 9% and 6%, separately.
Bitcoin: A Safe Haven Amidst Global Uncertainty?
Nevertheless, some analysts continue to insist that Bitcoin could be considered as a dependable hedge against the current And of course, according to Tyr Capital CIO Ed Hindi, the starting coin is one of the most reliable assets when it comes to preserving capital during geopolitics. He said that the situation in the Middle East suggests that people will look for safe-haven assets such as Bitcoins as they did gold prior to the credit crunch.
Bitcoin as a Digital Gold
Saylor, the executive chairman of MicroStrategy BW, says Bitcoin has beaten traditional assets such as the S&P 500 index as digital gold. Again, Hindi emphasized that the world’s number one digital coin should be a favorite among individuals who want to hedge against their investments as the global situation gets volatile.
Distrust in Classical Financial Systems
Not only in the Middle East, but in the regions of Europe and Asia, people start to distrust the capabilities of the classical financial systems. Hindi said the existing wars are gradually eroding the confidence of the public in governments and central bodies and made Bitcoin even more attractive for those willing to invest.
Also, Read @ Crypto Market Takes a Breather
