This week, the crypto market experienced a significant price drop due to escalating geopolitical tensions related to the conflict between Iran and Israel.
Price Decline of Bitcoin and Ethereum
Bitcoin fell by 4% in the past 24 hours, dropping to around $103,000 on Thursday. This significant decrease came after a weekly high of $110,653 on Monday. Ethereum also plunged 8%, reaching $2,530. Major altcoins like Solana, Dogecoin, and XRP experienced declines of 8.5%, 7.3%, and 5%, respectively. As a result, the total market cap fell to $3.27 trillion, down 2.71%. The trading volume surged to $173.14 billion as panic selling took over.
Experts' Opinion on the Crypto Market
Despite the market dip, crypto expert Dom Kwok, a former Goldman Sachs analyst, believes there is nothing to worry about. He mentioned on social media that geopolitical events like the Iran-Israel war create short-term uncertainty that negatively impacts market reactions. However, he added that "dips caused by geopolitical conflict often turn out to be great buying opportunities."
Current Situation and Possible Consequences
Adding to the volatility, nearly $3 billion in Bitcoin options are set to expire today, which could further influence price action. Analysts caution that if Bitcoin falls below $100K, a deeper correction could follow. However, many view the $100K level as strong support due to high liquidity. The Anxiety & Greed Index has switched to neutral, indicating a balance of anxiety and confidence among investors. Historically, markets tend to rebound from geopolitical shocks, and many hope this time will be no exception.
Currently, the cryptocurrency market remains under pressure, yet expert opinions suggest potential opportunities for long-term investors. The uncertainty brought by conflicts may be temporary, as the fundamental aspects of cryptocurrencies remain intact.
