Hi frens.
Sharp price declines were experienced by Bitcoin, Ethereum, and Solana as the tensions between Iran and Israel rose disrupting the crypto market.
Last night and thus early this morning Iran launched a series of missiles against Israel, presumably heralding the escalation of the confrontation in the Middle East. The incident has reportedly reverberated through traditional markets and it also caused a sharp reaction in the crypto market.
Remarkable price declines were seen by Bitcoin, Ethereum, Solana, and other major cryptos. Reportedly, the performance of Bitcoin in these tensions has caused concerns despite it being heralded as a potential safe-haven asset as cryptos have been seen as resilient in times of world unrest.
In spite of the growing institutional interest in digital assets, these swift price drops suggest that the crypto market remains highly sensitive to external shocks, especially when they involve geopolitical risk.
According to a report, October is often deemed a bullish month for crypto but the missile attack from Iran has disputed the positive momentum that Bitcoin and other crypto have been building throughout the early days of October.
Notwithstanding the uncertainties in the short term, some analysts think that this market response is part of a larger cryptocurrency maturation process. As more institutional participants enter the market and bring stronger risk management techniques and liquidity with them, the market's resilience may eventually grow.
What are your thoughts?
This is not a financial advice.
Image source: The Economic Times
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