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After Iran's airstrike on Israel, international crude oil prices soared more than 10%, gold prices surged significantly, and global stock index futures fell; safe-haven assets were sought after.
"The cryptocurrency market is declining in sync with other major risk assets, reacting negatively to news about Israel's strikes on Iran," said Caroline Malone, co-founder of a crypto derivatives liquidity provider. "We expect Bitcoin prices to find technical support around $101,000, but short-term price movements will be fully dominated by geopolitical news."
Global stock markets and futures for the three major U.S. stock indexes fell sharply after news of the airstrikes, and investors poured into safe-haven assets such as U.S. Treasuries. Crude oil surged more than 10% at one point, and gold also rose sharply to $3,450, hitting the 3,500 level again. "While awaiting more geopolitical news and a potential response from Iran, risk sentiment is likely to deteriorate further as traders opt to significantly reduce their exposure to risky assets ahead of the weekend." Market analyst Tony Sika Moore wrote in a note. Bitcoin fell to a low of $102,640 yesterday, and Ethereum fell to a low of $2,436 yesterday. Bitcoin has rebounded sharply, returning to more than $105,000, and Ethereum has also returned to more than $2,500.