Bitcoin (BTC) Price Cracks Under $60,000 As Iran-Israel Conflict Escalates, What’s Next?

The geopolitical tensions surrounding the Israel-Iran conflict don’t seem to be waning anytime soon! Amid reports of Israel’s fresh attack on Iran, the Bitcoin price has tumbled under $60,000 yet again in the last 48 hours.

The Escalating Israel-Iran conflict

According to a U.S. official speaking to ABC News, Israeli missiles have struck a location in Iran. The official, however, did not provide confirmation regarding potential strikes on sites in Syria and Iraq. Reports from Iran’s FARS news agency suggest an explosion was heard in the city of Ghahjaworstan, situated northwest of Isfahan. The cause of this explosion remains uncertain at this time.

Speculation surrounding explosions in Iran, Iraq, and Syria spurred investors to seek refuge in traditional safe-haven assets like bonds, gold, and the dollar. Meanwhile, speculative investments, including stocks and cryptocurrencies, faced escalating losses.

Bitcoin Price Sees Strong Volatility Before Halving

We are now just a day away from the Bitcoin halving event and the BTC price continued to show strong volatility. Even after today’s dip under $60,000, the BTC price has recovered quickly to $61,862 as of press time.

The ongoing geopolitical concerns have overshadowed the Bitcoin halving expected later on Friday, which will introduce a new supply shock in the market.

Historically, halvings have often propelled the price of the leading digital asset upward. However, this time, Bitcoin reached a record high in mid-March before the event, prompting speculation about whether traders have already factored in the expected impact.

The ongoing conflict between Israel and Iran has the potential to instigate a broader risk-off sentiment in the cryptocurrency market. On the other hand, banking giant JPMorgan stated that the halving event is already priced in at the moment. JPMorgan believes that the market is still in the overbought condition and that the Bitcoin price could see a downward trend post the halving event.

It also pointed out that the Bitcoin mining companies would face the biggest impact of the halving event. “As unprofitable bitcoin miners exit the bitcoin network, we anticipate a significant drop in the hashrate and consolidation among bitcoin miners with the highest share for publicly-listed bitcoin miners,” analysts led by Nikolaos Panigirtzoglou wrote.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.