The escalation of conflicts in the Middle East has led to a sharp decline in the prices of Bitcoin and Ethereum, creating a new wave of volatility in the cryptocurrency market.
Consequences of U.S. Attack and Iran's Response
Bitcoin’s (BTC) price plummeted to $100,837 following the escalation of conflict in the Middle East. The U.S. intervention and attacks on Iranian facilities caused panic in the markets. Iran responded by launching around 30 missiles toward Israel, adding uncertainty to the situation. These events raise questions about the potential for further escalation and even a conflict involving nuclear powers.
Short-term Predictions for Bitcoin and Ethereum
Analyst DaanCrypto points to impending volatility: "There’s a lot going on in the world right now. The key question is whether the conflict escalates or sides shift toward negotiations." Ethereum (ETH) has also come under pressure, dropping below $2,300 and risking entering a support-free zone. DaanCrypto warns that a fall below $2,210 could trigger cascading liquidations.
Market Uncertainty in the Cryptocurrency Space
The market remains extremely volatile. Popular trader Carl Mood believes Bitcoin could drop to $90,700, potentially resulting in a 30% drop across altcoins. If this scenario plays out, investor sentiment could rapidly deteriorate, leading to further losses.
The next 48 hours will be pivotal. Further escalation could lead to historic levels of volatility in cryptocurrency markets, while any signs of diplomatic progress may offer temporary relief. Investors are advised to closely monitor news and manage risks carefully.
