Cryptocurrency markets open in the red on Saturday Bitcoin At the time of writing, it was down 2.3%, according to CoinDesk data. This is in US-Iran tensions And it worries many people.
Markets opened lower today following yesterday’s poor performance. Bitcoin briefly fell below $70,000 on Friday, although inflation concerns related to U.S.-Iran tensions roiled market sentiment.
Experts assessed the accident.
Cryptocurrency collapse: Investors raise questions; experts weigh in
According to Bloomberg, analysts at venture capital firm Tagus Capital said: “Cryptocurrency market sentiment has deteriorated again. The persistence of extreme fear suggests that although some market participants anticipate a mitigating rebound, positions remain defensive.”
Another self-proclaimed Bitcoin analyst links crypto crash to president Donald TrumpRecent announcements regarding the Strait of Hormuz.
ALSO READ | Trump threatens to ‘destroy’ Iranian power plants if Strait of Hormuz is not reopened within 48 hours
“Bitcoin prices fell below $69,000 after Trump threatened to ‘destroy’ Iranian power plants if the Strait of Hormuz was not reopened within 48 hours,” the person wrote.
“This crypto crash is not random. It’s geopolitics hitting the market in real time,” they added.
Another investor on
Notably, Trump has threatened to open the currently blocked Strait of Hormuz, disrupting energy supplies and driving up prices. The president said that if this was not done, the United States would attack Iranian power stations, starting with the largest ones. Trump’s announcement was made in a “Truth Society” post, but its impact was also felt during the transaction.
Jake Ostrovskis, head of over-the-counter trading at Wintermute, told Bloomberg that traders are weighing whether rising oil prices will push up inflation or hinder economic growth. He added, “Either way, Bitcoin is caught in the crossfire – and the overall volatility from the conflict is driving wild intraday moves as the market reprices the macro path in real time.”
What to know about Bitcoin during the US-Iraq war
Bitcoin has weathered conflicts in the Middle East better than most assets. Apart from a brief sell-off on February 28 following the U.S. and Israeli bombing campaign against Iran, the market has remained relatively calm. The coin has even shown positive returns so far this month.
Bitcoin prices rose approximately 7% in March. Gold prices are down about 13% after a long run that saw them hit record highs multiple times. Global benchmark Brent crude oil prices rose more than 40% as trade disruptions and oil field explosions took their toll.
(With input from Bloomberg)
