The U.S. stock market and the crypto prices came crashing down, with Israel launching a preemptive strike on Iran. The brewing tensions between the bitter rivals eroded after Israel launched a barrage of air strikes on Friday morning in Tehran. As the Israelis expect a retaliation, the Israeli Defense Minister, Israel Katz, declared a state of emergency.
“Crypto is reacting negatively to news of Israel strikes in Iran, in line with major risk assets,” said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for crypto derivatives. “We expect to see technical support around $101,000, but geopolitical news will drive price action from here in the short term,” said Mauron, referring to Bitcoin’s price.
Ethereum crashes by 10%
Meanwhile, the Ethereum price crashed by 9.6%, taking it down to $2,437 from $2,770. XRP is trading at $2.10 after losing 6.38% in the last 24 hours, while Solana lost 9.38% in the last 24 hours as it exchanges hands at $144.
Giving his feedback about the crash, Sean McNulty, derivatives trading lead of APAC at digital-asset prime brokerage FalconX Ltd, stated that although Bitcoin is occasionally used as a macro hedge in acute risk moments like this, particularly involving kinetic military conflict, “liquidity is prioritized over narrative.” As such, “Traders raise cash, rotate into dollars, and reduce leveraged or volatile exposure.”
