Bitcoin showed resilience as it recovered from a recent selloff, indicating the high volatility across asset markets. The cryptocurrency rose by as much as 5.9% and was trading around $64,600, while smaller coins like Polkadot and Uniswap saw even larger rallies of more than 10%. Ether also advanced by 5% in response to the positive momentum.
However, the market was not all smooth sailing as geopolitical tensions rose when Iran launched attack drones and missiles against Israel. This led to a spike in tension in the region, with crypto traders among the first to react to the major event. Approximately $1.5 billion worth of bullish crypto wagers were liquidated in just two days, causing a temporary price deterioration.
Stock markets in the Middle East mainly saw a sea of red, with Israel equities trading slightly lower in the aftermath of the attack. Bitcoin’s price was also down from its mid-March record, with demand for US exchange-traded funds moderating as uncertainty gripped the market.
Crypto speculators are eagerly awaiting the Bitcoin halving expected around April 20, but there are growing doubts about the cryptocurrency’s ability to reach new price peaks after its recent historical high. With so much volatility and uncertainty in the air, investors are advised to proceed with caution in the crypto market.
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