Why is Bitcoin Down? – Sufferings Of The Middle East

Most of you must be wondering – “Why is Bitcoin down?” 

Well, the recent conflict in the Middle East has taken a dangerous turn. Iran has launched attack drones and missiles against Israel. This has led to a critical bitcoin price drop has led to tensions in the Middle East.

Let’s understand the whole incident below:

The Israel Attack – 

As a part of revenge, on April 13, a drone attack on Israel was done by Iran not only causing havoc in the lives of the people but also affecting the economy of the country. As a result of this drone attack, Bitcoin dropped more than 8% from its value to trade at $61,514.

Hence, the value initially fell from $71,000 to $ 65,000 and then even came at the asytonishing level oof $ 61,000. 

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Is Crypto World In Crisis Due To Bitcoin Price Drop?

• Despite the recent decline triggered by the drone strike, the overall trend in the cryptocurrency market has been positive. Bitcoin, for example, has experienced a good hike over the past year, reaching an all-time high of over $64,000 in April 2021.

• As Israel braced for an attack, the tension hurt stocks and boosted havens such as bonds and the dollar. Data show a critical amount of bullish crypto wagers via derivatives were liquidated on Friday and Saturday. This was one of the heaviest two-day liquidations in at least six months, leading many to ask, “Why is Bitcoin’s price dropping?” 

• In the past, other cryptocurrencies like Binance coin and Ethereum saw a good hike, but the recent geopolitical unrest has also affected their value.

• If you are still confused as to why is Bitcoin down then let us tell you in simple words- At present, the world’s largest cryptocurrency’s market cap is 13% down from it’s highest price ever, that is, $73,798 in March. 

Bitcoin Price Drop & Bitcoin Halving 

Demand for dedicated US exchange-traded funds that debuted in January helped the token reach an all-time high but now, the need is to understand why is Bitcoin down and why is Bitcoin’s price dropping.

Crypto speculators are awaiting the so-called Bitcoin halving, which will reduce the new supply of the token in half and is expected around April 20.

Historically, the halving has proved a tailwind for prices, though there are growing doubts about whether a repeat is likely given Bitcoin recently hit a historical peak. 

Conclusion

In conclusion, while the current Iran-Israel conflict has led to a temporary bitcoin price drop, it is important to understand the broader market trends. Despite the current downturn, the overall trend in the cryptocurrency market remains positive. However, as the situation continues to unfold, crypto investors and our team at  Reading Crypto will be keenly watching the developments and their impact on Bitcoin prices.

Hope this was informational!

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Disclaimer: This post is intended solely for informational purposes and should not be taken as legal, tax, investment, financial, or any other form of advice. Although all the information provided is true to the best of our knowledge, it is advisable to research well before making any kind of investments or decisions in general. The team of ReadingCrypto bears no responsibility in the event of any adverse outcomes.