- Equities and cryptocurrencies tumble following Iran’s missile attack on Israel.
- Bitcoin dips below $62,000 while Solana trades under $150.
Crypto prices tumble as Ethereum drops below $2,500 and Iran fires missiles at Israel. Investors are rapidly exiting both equities and cryptocurrencies as tension escalates between the two nations.
According to CoinGecko, the global market cap of all cryptocurrencies has declined by approximately 5.5% since Monday.
Among the top 10 cryptocurrencies, Ethereum and Solana are experiencing the most significant losses, with Ethereum falling below $2,500 and Solana dropping under $150.
On Monday evening around 19:30 local time, sirens echoed throughout Israel, as reported by Haaretz. Explosions were heard in both Jerusalem and Tel Aviv, indicating a serious escalation.
Just hours before the missile launches, news surfaced that Iran was planning to retaliate against Israel for its continuous bombing of Hezbollah in Lebanon.
Impact on Cryptocurrency Market
The latest attack has intensified fears that Israel’s ongoing conflict with Iranian-backed forces—such as Hamas in Gaza and the Houthis in Yemen—might lead to direct warfare between the two regional powers.
Quinn Thompson, founder of Lekker Capital, commented on the prevailing sentiment. Many believed Iran would opt for a relatively subdued response to avoid reinforcing the geopolitical stance of Republican Donald Trump in the upcoming U.S. presidential election.
“However, markets are a discounting mechanism,” Thompson explained. “Even with just a 20% chance of a significant escalation in the Middle East, markets must adjust their pricing to reflect the potential outcomes,” he told DL News.
Stock Market Response
Stocks also saw a considerable decline on Tuesday, with the Nasdaq dropping 1.5% post-market open. Investors moved towards safer assets like bonds, the dollar, and gold.
Despite Bitcoin being labeled as “digital gold,” it too faced losses, momentarily dipping below $62,000.
Thompson mentioned this was predictable. Both stock and crypto markets had been overly optimistic, with many assets priced beyond their fair value according to technical indicators.
“The market’s overconfidence and overbought status made it more susceptible to retreat upon receiving negative news,” Thompson elaborated.
As tension escalates, market participants are bracing themselves for more fluctuations. Be prepared and stay informed.
Aleks Gilbert is DL News’ New York-based DeFi correspondent. You can reach him at [email protected].
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