Key points:
- Bitcoin fell almost 8% following Iran's missile and drone attack on Israel.
- Other cryptocurrencies such as Ethereum, Solana and Binance Coin also plummeted following the issue.
- Friday and Saturday saw the largest liquidations in 6 months, with $1.5 billion in cryptocurrencies liquidated.
Bitcoin fell approximately 8% following Iran's unprecedented drone and missile attack on Israel. According to a recent Bloomberg report, Bitcoin's drop marked the biggest pullback since March 2023.
Iran's move came in retaliation for a deadly attack in Syria that killed top Iranian military officers. With the recent attack, the long-running regional war has moved into another dangerous phase. Iran reportedly launched 170 drones, more than 30 cruise missiles and more than 120 ballistic missiles at Israel.
Consequently, Bitcoin fell below $62,000, representing a sharp drop of 7.7%. Not only Bitcoin but other major cryptocurrencies were also affected by the war between Iran and Israel. While Ethereum saw a 7% drop, Binance Coin fell 9%. For its part, Solana marked a significant drop of 12% in 24 hours and more than 22% in 7 days.
However, following an X post from an account connected to Iran's Permanent Mission to the United Nations, which signaled the end of the attack, cryptocurrencies began to recover. The message read,
The matter can be concluded. However, if the Israeli regime makes another mistake, Iran's response will be considerably more severe. It is a conflict between Iran and the rogue regime in Israel, from which the US MUST STAY!
The Bloomberg report hinted at a further continuation of the cryptocurrency sell-off. Zaheer Ebtikar, founder of crypto fund Split Capital, stated that the cryptocurrency sell-off is “likely dependent on further rally.” He added: "People will really look at what the markets are going to be like on Monday." The report also indicated that Friday and Saturday saw the largest liquidations in 6 months, with $1.5 billion in cryptocurrencies liquidated.
At the time of this publication, Bitcoin has recovered from its severe drop to $64,003, marking a drop of 5.63% in one day, 7.28% in one week, and 11.75% in one month. Bitcoin's 24-hour trading volume at $58,000,479,565 has marked a substantial increase of over 21%.
