Bitcoin prices surged on Monday, recovering from a steep selloff last week as tensions escalated in the Middle East. The largest cryptocurrency rose as much as 5.9% to trade around $64,600, with smaller coins like Polkadot and Uniswap rallying more than 10% and Ether advancing 5%.
The market reaction came after Iran launched attack drones and missiles against Israel, heightening geopolitical tensions in the region. Crypto traders were among the first to react to the news, with $1.5 billion of bullish crypto wagers being liquidated in the heaviest two-day liquidations in at least six months.
Stock markets in the Middle East were mostly in the red on Sunday, reflecting the uncertainty surrounding the escalating military conflict between Israel and Iran. The significant military escalation could test whether Bitcoin and other cryptoassets offer a safe haven in times of turmoil.
Despite the recent surge, Bitcoin is still down from its mid-March record, with demand for exchange-traded funds moderating. Crypto speculators are eagerly awaiting the upcoming Bitcoin halving expected around April 20, though there are growing doubts about the price impact following historical peaks.
The impending volatility across asset markets driven by the military escalation in the Middle East has put Bitcoin and other cryptocurrencies in the spotlight, with investors closely monitoring their performance in times of geopolitical turmoil. As tensions continue to escalate, the crypto market remains on edge, with traders poised for any further developments that may impact prices.
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