Bittime - Bitcoin prices were under pressure again on Monday (17 April 2024) due to panic selling in the market following Iran's attack on Israel. The attack also pushed the US dollar up to its highest level in five months. The following is an investigation of the impact of the war between Iran and Israel by investing.com.
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Bitcoin Drops Nearly 6%
The world's largest crypto asset fell nearly 6% in the last 24 hours to $63,382.7 after experiencing a slight intraday increase.
Iran-Israel Tensions Pressure Bitcoin Prices
Bitcoin prices were hit primarily by worsening risk appetite after Iran launched drone and missile attacks on Israel on Saturday.
This causes market players to switch to safe-haven assets such as the US dollar and gold.
The US dollar jumped to a 5.5 month high, while gold prices touched a record high.
US Dollar Strong, Bitcoin Pressured
The strengthening of the US dollar is the main pressure for Bitcoin, considering that Bitcoin usually benefits from increased risk appetite in the market.
Bitcoin's performance so far is in stark contrast to the perception of it as a safe haven digital asset.
BTC to IDR via Bittime Exchange
Iran-Israel Conflict De-escalation Signal Relieves Pressure
However, Bitcoin got a bit of a breath of fresh air amid signs the Iran-Israel conflict may not escalate further.
Iran indicated it had ended its attacks on Israel, while Israeli ministers were also reportedly considering not carrying out direct retaliatory strikes.
“As one of the major assets traded 24/7, Bitcoin and other crypto assets often experience an overreaction to breaking news on the weekend before traditional markets open,” Joe Vezzani, co-founder and CEO of LunarCrush, told Investing.com.
“While the initial response can be significant, historically these movements often correct after investors have had time to fully digest the new information,” he added.
Bitcoin ETF Inflows Slow
Nonetheless, rising geopolitical tensions are also affecting inflows into Bitcoin ETFs, with their pace slowing recently.
Altcoins Recover from Weekend Plunge, But Fears of US Interest Rate Hike Loom
Other major crypto assets also experienced volatility after an eventful weekend. Ethereum, the world's No. 2 cryptocurrency, rose 1.4% to $3,114.78, while Solana fell 2% and XRP rose 1.6%.
Also Read How To Buy Crypto:
Prospects for US Interest Rates Still High
However, potential big upside in crypto is also tempered by the prospect of higher US interest rates for a longer period of time, following hotter-than-expected inflation data and hawkish signals from the Federal Reserve last week.
Market participants appear to have largely eliminated bets that the Fed will start lowering interest rates in June - a scenario that would be bad for crypto markets.
Crypto assets typically benefit from a low interest rate and high liquidity environment – factors that are key drivers of the 2021 bull run.
Waiting for the Impact of Bitcoin ETF Launch
However, this year's gains have largely skewed towards Bitcoin, as capital flows surged into newly approved spot Bitcoin exchange-traded funds (ETFs) in the US market.
Also Read: Potential Impact of Bitcoin ETF Approval
But these capital flows have also seen slowing in recent weeks, raising more uncertainty about Bitcoin's potential further upside.
Bitcoin has fluctuated between $60,000 and $70,000 for a month after hitting a record high above $73,000 in early March.
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How to Buy Crypto from Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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