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Middle East Tensions Trigger Equities Sell-Off, Bitcoin Drops to $60,246

On Tuesday, major U.S. stock indices, including the Nasdaq Composite, Dow Jones Industrial Average, Russell 2000, and S&P 500, all closed in negative territory, driven by growing concerns over potential conflict escalation in the Middle East. According to the U.S. State Department, Iran launched nearly 200 ballistic missiles toward Israel. Following the announcement, bitcoin dipped to $60,246, while gold prices experienced a modest 1% rise.

Conflict Fears Rattle Markets: U.S. Stocks Slide, Bitcoin and Ethereum See Sharp Declines

On Oct. 1, 2024, reports flooded in stating that Iran had launched missiles at Israel, with most of the attacks successfully intercepted. However, Israeli military spokesperson Daniel Hagari noted that “a few hits” did occur. As the news broke, the markets reacted swiftly, and U.S. equities took a nosedive. The Russell 2000 (RUT) dropped 1.48%, the Nasdaq Composite (IXIC) fell 1.53%, the Dow Jones Industrial Average (DJI) slid 0.41%, and the S&P 500 (GSPC) lost 0.93%.

Globally, markets tightened as concerns mounted over the potential escalation into a world war. Social media is filled with discussions about World War III, and news outlets across the globe are delivering constant updates. Just like traditional stocks, the crypto market is feeling the pressure, shaken by news that has unsettled equity investors. The crypto market’s overall value has dropped to $2.12 trillion, down 5.59% over the past 24 hours.

Bitcoin (BTC) fell 4.86% on Tuesday, while ethereum (ETH) dropped 6.5%. The leading crypto asset, BTC, hit a low of $60,246 at 4:30 p.m. EDT, while ETH reached an intraday low of $2,412 before rebounding slightly to the $2,440 zone. Trading volume, however, has remained sluggish since the morning, sitting at $109.37 billion at press time. Although it’s still 33.12% higher than Sept. 30’s volume, much of the trading reflects sell pressure. By 5 p.m. on Tuesday, BTC managed to rise to the $60,800 range.

Meanwhile, gold and silver have edged up by roughly 1% each. At 4:30 p.m. EDT, gold had gained 1.07%, and silver had increased by 0.82%. The looming threat of war casts a heavy shadow over global markets, unsettling both traditional assets and crypto alike. Market participants are recoiling from uncertainty, and the prospect of further conflict is driving pervasive unease. As tensions grow, the fragile balance is being disrupted, sending markets into a cycle of fear and retreat, leaving no asset class untouched by the anxieties of war.

Source: https://news.bitcoin.com/middle-east-tensions-trigger-equities-sell-off-bitcoin-drops-to-60246/

Few months ago when Iran send missiles to Israel, bitcoin dropped. When the price of bitcoin fall yesterday and I saw on BBC that Iran sent over 2000 missiles to Israel, I was thinking it could be one of the reasons for the price fall of bitcoin. But how is the tension connected to the price drop? Which means any tension between Iran and Israel will lead to another sell off if anything like that happens again.

Yes that's a bit concerning because the situation is not improving, on the contrary, it is even getting worse. Regarding Bitcoin price I'm not sure it's capable of affecting it too much. Because Bitcoin is considered as a safe haven by many people, so people considering it as risk and volatile asset will maybe sell yheir bag if other bad news about the war happened but all other people will hold their bags or they will buy more BTC if they think its price has become cheap enough.