Bitcoin has plunged over 4% to $103,556 in response to Israeli airstrikes near Tehran and Tabriz. This escalation has heightened tensions in the Middle East, driving investors towards gold as a safe haven. U.S. officials are closely monitoring the developments, as both oil and equity futures have also experienced declines.
Late Thursday, Bitcoin experienced a drop exceeding 4% after Israel conducted airstrikes against Iranian targets, contributing to a widespread sell-off in risk assets.
The leading cryptocurrency fell to $103,556 from a 24-hour peak of $108,500, as reported by CoinGecko.
Israel confirmed that the airstrikes targeted Iranian military facilities near Tehran and Tabriz, characterizing them as a “preemptive response” to escalating threats.
During a press conference on Thursday, Israeli Prime Minister Benjamin Netanyahu described Iran’s nuclear ambitions as a “clear and present danger,” asserting that the preemptive actions would persist until the threat is neutralized.
MUST WATCH 🔴🔴
Israeli Prime Minister Netanyahu addresses the nation’s strike against Iran and its nuclear program: pic.twitter.com/gd4A8DYKHX
In a statement, the Israel Defense Forces noted: “Foryears,IranhasbeenpromotingterrorismdirectlyandindirectlyagainsttheStateofIsrael,fundinganddirectingterroristoperationsthroughitsproxiesacrosstheMiddleEast,whileadvancingtowardsnuclearweapons.”
“Iran is now closer than ever to obtaining nuclear weapons, which would pose a massive threat not only to Israel but to the entire globe,” the IDF emphasized.
While Iran has yet to formally respond, media reports indicate explosions and air traffic disruptions in the affected regions.
This incident follows a recent high-level meeting between Israeli and U.S. defense officials. Though Washington has refrained from commenting directly, it is reportedly keeping a close eye on the events as they unfold.
“The recent escalation between Israel and Iran is shaking risk assets and the oil market, but we have witnessed similar scenarios in the past,” commented Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital, to Decrypt.
“Prior flashpoints, including the April 2024 strikes, led to weekend sell-offs in crypto, only for the market to rebound sharply once tensions eased. Those episodes ended up being excellent buying opportunities,” he added.
This latest surge in tensions has reignited discussions among investors about whether geopolitical shocks necessitate long-term strategic adjustments or if they merely result in short-lived market disruptions.
“These conflicts usually tend to be brief due to the significant stakes involved, making it unlikely for a larger, prolonged conflict with multiple parties to unfold,” stated Kelvin Koh, co-founder and CIO of Spartan Capital, in a conversation with Decrypt.
“We consider the market correction an advantageous buying opportunity for quality risk assets that have been heavily discounted as a result of the ongoing turmoil,” he further noted.
Agreeing with this perspective, Jamie Coutts, chief crypto analyst at Real Vision, observed that while Bitcoin tends to respond to risk-on and risk-off sentiments among short-term traders, the medium to long-term trajectory is increasingly being influenced by institutional investors.
“This is why, in the short term, it can fluctuate with risk assets but is poised to outperform gold in the long run,” he remarked.
Gold surged 1.7% to $2,414 per ounce, while U.S. futures indicated a downward trend as investors assessed the risks of a widening regional conflict.
Daily Debrief Newsletter
Start each day with the top news stories right now, plus original features, a podcast, videos, and more.
