The crypto space was hit hard this week, shaken by surging geopolitical tensions as the existing tensions between Iran and Israel boiled over into open combat. Bitcoin (BTC), Ethereum (ETH), Ripple’s XRP and other top assets plummeted.
Bitcoin dropped by 4% in the past 24 hours, falling to around $103,000 on Thursday. This significant decrease comes after a weekly high of $110,653 on Monday. Ethereum plunged even more dramatically, falling 8% to $2,530.
Even major altcoins like Solana, Dogecoin, and XRP saw large declines of 8.5%, 7.3%, and 5%, respectively. Cumulatively, the market cap fell to $3.27 trillion, 2.71% lower. On the other hand, the trading volume stands at $173.14 billion surging as panic selling took over. The precipitous decline has jolted investor confidence and prompted broader sell-offs among digital assets.
Despite the market dip, crypto expert Dom Kwok, who is a former Goldman Sachs analyst, believes there’s nothing to worry about. On social media, he wrote that geopolitical phenomena such as the Iran-Israel war cause near-term uncertainty, to which markets tend to respond negatively. But in the long run, the fundamentals of crypto remain strong. Dom added, “dips caused by geo-political conflict turn out to be great buying opportunities.”
Adding to the volatility, nearly $3 billion in Bitcoin options are set to expire today, which could further impact price action. Analysts caution that if Bitcoin falls below $100K, a deeper correction could follow. However, many also view the $100K level as strong support due to high liquidity.
At the same time, the anxiety & Greed Index has switched to neutral, indicating a balance of anxiety and confidence among investors. History has proven that markets frequently rebound from geopolitical shocks, and many believe this time will be no exception.
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