Resilient Bitcoin: Crypto Market Rebounds Amid Iran-Israel Tension

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Resilient Bitcoin: Crypto Market Rebounds Amid Iran-Israel Tension

Crypto Market Rebounds Amid Iran-Israel Tension

The tension between Iran and Israel caused a downturn in the crypto market. The fluctuation and fall of Bitcoin created a havoc situation among crypto investors in the wake of heightened tensions between Iran and Israel. Investors sought out safer possibilities for investing as a result of unease about possible escalations in the Middle East. The recent data also influenced the market and played a significant role in the downturn situation as inflation stalled well above the United States Central Bank’s 2 per cent target for the FQ1 of the year. The largest cryptocurrency by market capitalization plunged as low as $60,800 at the time of conflict, with the market seeing at least $962.40 million in liquidations. 

The reports point out that the sharp downfall in the crypto market was attributed to the expected results of the war, such as the potential for high inflation and increasing commodity prices. These attributes led to concerns that central banks would be less likely to cut interest rates, creating a cynical environment for both cryptocurrencies and stocks. As the market declined, highly leveraged positions were liquidated turned into forced selling and further falling pressure on prices.  Ash Crypto, a Crypto analyst, compared the sell-offs that occurred in 2020 at the beginning of the COVID-19 epidemic to those that occurred at the beginning of the conflict between Russia and Ukraine.

However, the crypto market has demonstrated its rebound, with a prominent recovery that was witnessed early this week. According to the reports, over the last 24 hours, the digital currency has bounced back to $65,170 displaying a 2.66 per cent rise on Monday after falling below $62,000 on Sunday, April 14. In further addition to this, Solana (SOL) and Ethereum (ETH) have witnessed even more significant profits, up 12.8 per cent and 7 per cent. Apart from SOL and ETH, Toncoin, Avalanche and Dogecoin also raised to 15%, 4.7% and 5.3% respectively. 

Mudrex’s CEO, Edul Patel states that “Bitcoin experienced a dip to $62,000 before recovering to $65,000 over the weekend due to heightened liquidations and escalating geopolitical tensions between Iran and Israel. Bitcoin has been consolidating within the $60,000 to $73,000 range in the past few days. However, bulls are defending the $60,775 level. The immediate support of Bitcoin lies at the $64,500 level and the resistance is at the $67,900 level.” 

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Besides it, the CEO of Galaxy Digital, Mike Novogratz anticipated a price recovery after the initial sell-off. He said that while conflicts between countries are costly, he expects the digital currency to resume its upward trend once the risk flushes subsidies. Novogratz expressed optimism that calmer heads will prevail, averting a significant regional crisis and enabling the cryptocurrency market to continue expanding steadily. 

In the meantime, CoinDCX Research Team states that “With the Bitcoin halving approaching, we may see increased volatility in the market.” 

In the last 24 hours, the global cryptocurrency market cap surged up to 2.31% to approximately $2.38 trillion. The total volume in Decentralized finance is at present $10.06 billion, 8.84 percent of the total crypto market in a day volume. According to data available on CoinMarketCap, the total amount of stablecoins is currently $104.98 billion, or 92.20% of the 24-hour volume of the whole cryptocurrency market.

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