Iran-Israel War: Will Crypto Market Continue Crashing Amid Conflict?

The ongoing conflict between Iran and Israel has sent shockwaves through the crypto market, resulting in significant losses for Bitcoin, Ethereum, and altcoins. Expert Dom Kwok reassures that short-term instability may present buying opportunities as the market looks for stability amid volatility.

Tensions between Iran and Israel have escalated significantly this week, pulling the global cryptocurrency market into a tailspin. Bitcoin, Ethereum, and leading altcoins experienced steep declines, with Bitcoin falling about 4% to around $103,000 as of Thursday, dipping from a peak of $110,653 earlier in the week. Meanwhile, Ethereum’s drop was even more severe, plummeting 8% to $2,530.

Major altcoins are not immune either. Solana, for example, saw a notable decrease of 8.5%, while Dogecoin and XRP dropped by 7.3% and 5%, respectively. Consequently, the overall market cap shrank to $3.27 trillion, reflecting a 2.71% downturn. The trading volume has skyrocketed to $173.14 billion, driven largely by panic selling. This downturn is shaking investor confidence, igniting broader sell-offs of digital assets.

However, Dom Kwok, a crypto specialist and former Goldman Sachs analyst, argues that there’s no cause for alarm. He shared his insights on social media, emphasizing that while geopolitical conflicts like the Iran-Israel war trigger short-term market reactions, the foundational strength of cryptocurrencies endures over time. According to him, “dips caused by geo-political conflict turn out to be great buying opportunities.”

On the horizon, nearly $3 billion in Bitcoin options are due to expire today, which analysts say might further sway price movements. There’s concern that if Bitcoin slides below the $100,000 mark, it could trigger a more severe correction. Nonetheless, some experts view this $100,000 threshold as a pillar of support, bolstered by significant liquidity.

In terms of investor sentiment, the Anxiety and Greed Index has settled into a neutral position, suggesting that investors are currently mixed between worry and optimism. History supports the notion that markets often rebound after geopolitical disturbances, and many analysts are betting this cycle will follow suit.

In summary, the rise in geopolitical tensions between Iran and Israel is shaking the cryptocurrency market, leading to substantial drops in Bitcoin, Ethereum, and other cryptocurrencies. Yet, some experts, including Dom Kwok, advocate a long-term view, suggesting that temporary dips can present solid buying opportunities. As Bitcoin faces expiring options and potential for further correction, investors are keenly watching the market, balancing apprehension with the hope of a market rebound.

Original Source: www.cryptotimes.io