Bitcoin drops below $60,000 on news of Israel's missile strike on Iran

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Bitcoin’s price has dropped below $60,000, hitting a low of around $59,600 on Binance. The drop follows news that Israel conducted missile strikes against Iran early Friday morning (UTC). ABC News first reported the attack, citing confirmation from a senior US official.

As reported, Israel’s action is a response to Iran’s attack last Saturday, using over 300 drones and missiles. Bitcoin tumbled following Iran’s attack. According to Israeli military officials, nearly all of these were intercepted by Israel and its allies, including the US.

The market reacted quickly to the latest news, with Bitcoin’s value dipping below the $60,000 threshold. After the sudden drop, Bitcoin has retraced above $61,500, down slightly in the last 24 hours, according to CoinGecko’s data.

Altcoins are also down, with Ethereum currently trading near $3,000, a 2% decline in the last 24 hours. Major cryptos are experiencing similar drops, ranging from 1-3%.

Commenting on the escalating conflict between Iran and Israel, Bitcoin analyst Tuur Demeester said geopolitical instability tends to boost demand for assets that are “liquid,” “scarce,” and have “low counterparty risk.” He thinks Bitcoin, commodities, and gold are assets that fit these criteria.

Iran-Israel war is escalating. Oil price up nearly 4% for the day. My thesis remains that military chaos will always be a demand catalyst for liquid, scarce assets with low counterparty risk. I see bitcoin, commodities & gold as safe bets in this environment. https://t.co/W3l6ONmZU9

— Tuur Demeester (@TuurDemeester) April 19, 2024

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