U.S. and Israel, Iran attacks aftermath cause turbulence in the cryptocurrency market

The United States and Israel launched a military attack on Iran, causing significant turbulence in the cryptocurrency market. As the prices of major cryptocurrencies like Bitcoin declined, the market showed signs of adjusting to geopolitical instability.

After news of the Iran strike broke on the 28th local time, Bitcoin price dropped to $63,038 at 6 a.m. New York time, then traded around the $64,000 level. This suggests that despite the unstable situation, the market responded appropriately. Ethereum also experienced a similar impact, plunging 4.5% to $1,836 at one point.

Although the price decline was triggered by U.S.-Israeli military actions, the virtual currency market had already been showing signs of weakness. Since a heavy blow from Bitcoin futures liquidation in October last year, the market has been in a prolonged downward correction. In this context, the Iran situation added an additional shock.

According to data from market analysis platform CoinGecko, following the Iran-related news, approximately $128 billion in digital assets' market value evaporated. This is interpreted as global investors seeking safe assets amid uncertainty. Wells Bank senior investment strategist Susanna Stritt expects that, in this uncertain environment, funds will accelerate into safe assets like gold.

This trend has raised concerns about how cryptocurrencies will respond to external shocks in the future. Despite short-term fluctuations, the long-term direction of the market remains unpredictable. Economic experts note that some of the volatility has been absorbed, which may help stabilize the market in the future.