Bitcoin is falling due to the escalation of the conflict in the Middle East
The value of Bitcoin and other leading cryptocurrencies is falling sharply amid the escalation of military conflict and mutual threats between the US, Israel and Iran.
This is reported by Bloomberg.
It is noted that on 22 March, the price of Bitcoin fell by 3.3%, dropping to $68,150, its lowest level since early March.
Other popular tokens showed even more significant negative trends – in particular, Ether lost nearly 5%, dropping to $2,050, and Solana, XRP and Cardano also fell in value. Overall, since late February, when US and Israeli attacks on Iran began, the world’s largest cryptocurrency has lost around 20% of its value.
The situation in the markets has once again cast doubt on the ability of digital assets to act as a reliable store of value during periods of global instability. Peter Tchir, Head of Macro Strategy at Academy Securities, notes that a combination of factors is currently weighing on the sector.
In addition to the general sell-off of risky assets, energy prices are also having a significant impact, making token mining more expensive.
“A significant portion of recent gains, in my view, were driven by legislation that is likely becoming increasingly difficult to pass – the District of Columbia is focused on the war, and recently new legislation has not led to the buying frenzy from newcomers that the crypto community seems to be expecting. It seems that risk is rising again,” the expert said.
An additional source of pressure has been the situation in the Strait of Hormuz and Donald Trump’s statements about his readiness to bomb Iranian power stations. This has already triggered a rise in oil prices, which has been reflected in the cost of perpetual futures and heightened investor pessimism ahead of the opening of traditional trading venues
