Cryptocurrencies Tumble as Iran Launches Drone Attack on Israel; Bitcoin, Crypto Price Could Hit $500 Billion Crash

By Madz Dizon

Apr 13, 2024 07:01 PM EDT

Cryptocurencies Tumble as Iran Launches Drone Attack on Israel; Bitcoin, Crypto Price Could Hit $500 Billion Crash
In this photo illustration, a visual representation of the digital Cryptocurrency, Bitcoin is seen on January 09, 2024 in London, England.
(Photo : Dan Kitwood/Getty Images)

Iran's recent drone strike on Israel has had a significant impact on the cryptocurrency markets. The price of Bitcoin has fallen to over $60,000, while other cryptocurrencies are also experiencing a decline.

The value of cryptocurrencies took a sharp dive over the weekend following news of an alleged attack by Iran on Israel.

Iran's Drone Strike on Israel Affects Cryptocurrency Markets

This incident highlights the volatility of crypto assets, which can experience significant fluctuations even when more conventional investment options are not accessible for trading.

According to MarketWatch, the global crypto market experienced a significant 9% decline following reports of Iran's confirmed drone attacks on Israel.

Iran has stated that the strike was carried out as a response to a previous attack that resulted in the deaths of military generals in Syria. Iran attributed the attack to Israel.

Fears are mounting that the regional conflict, which has been intensifying since the October 7 attack on Israel by Gaza's Hamas militants, could potentially escalate into a full-scale war following Iran's response.

The objectives of the sluggish drones remain uncertain, yet the market swiftly responded, resulting in a 7% decline in bitcoin, a 9% drop in Ethereum, and a 16% slide in Solana.

Speculative cryptocurrencies such as Dogecoin and Shiba Inu experienced a significant decline of 20%.

"Bitcoin dropped like a rock in response to the Iran/Israel news," stated Rajat Soni, a chartered financial analyst with a focus on bitcoin.

 Soni further explained that the stock market is not currently experiencing a crash due to the fact that stock investors do not have access to their assets during weekends, unlike bitcoin which trades continuously.

The price of Brent crude oil has experienced a significant increase this week, reaching approximately $90 per barrel. This surge can be attributed to concerns regarding potential supply constraints resulting from a potential conflict in the Middle East.

READ NEXT: Nike CEO John Donahoe is Fed Up With Remote Work, Says Setup Slows Down Innovation in New Products 

Gold Prices Surge

Similarly, the price of gold, which is often considered a safe investment, has seen a remarkable surge, reaching record highs with a 10% increase over the past month.

In the past six months, the bitcoin price has experienced a significant increase, driven by a surge in demand through recently approved Wall Street spot bitcoin exchange-traded funds (ETFs) and an upcoming supply cut referred to as a halving.

Both gold and bitcoin, often compared for their value and stability, have experienced a decline in the past 24 hours.

"Bitcoin just flash crashed to just above $61,000. That's only 26 ounces of gold," shared Peter Schiff, a well-known critic of bitcoin and advocate for gold, on X.

During its highest point 2.5 years ago, the value of one bitcoin was equivalent to 37 ounces of gold. There has been a decrease of 30%. The value of digital assets seems to be declining when compared to the value of real gold, according to Forbes.

READ MORE: Russia Destroys Ukraine's Largest Power Plant After Launching Widespread Attacks on Energy Grid 

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics