Bitcoin prices tumbled sharply on Sunday, falling nearly 8% in their steepest decline in over a year. The drop was triggered by an Iranian attack on Israel, which escalated geopolitical tensions in the Middle East and dampened investor risk appetite.
Bitcoin, the world’s largest and most well-known cryptocurrency, plummeted 7.9% on Saturday (April 13) to $61,842 USD (€58,056.70). This marked its steepest decline since March 2023. The cryptocurrency later managed to recoup some of its losses, trading down 3.7% (over the past 24 hours) at $64,804.65 USD around 10:30 AM CET on Sunday.
Since reaching a record high of $73,794 USD on March 14, bitcoin has lost over 16%.
Other cryptocurrencies also weakened, including Ethereum and Solana. Ethereum was trading down over 5% at $3,094.07 USD on Sunday morning, while its price dipped as low as $2,930 USD on Saturday.
Escalation of Middle East tensions spooked investors
The Iranian drone and missile strike on Israel was carried out in retaliation for an attack on the Iranian consulate in Damascus, Syria. The escalation of tensions in the Middle East has unnerved investors and reduced their appetite for riskier assets like cryptocurrencies. During uncertain times, investors tend to gravitate towards more conservative investments such as gold or the US dollar.
The future of bitcoin and other cryptocurrencies remains uncertain and will depend on the evolution of the geopolitical situation and overall sentiment in the financial markets.
