Key Points
- Bitcoin’s value dropped by over 8% following a drone attack by Iran on Israel.
- The crypto market liquidated over $860 million in assets over two days due to geopolitical tension and economic factors.
After a drone attack by Iran on Israel on April 13, the value of Bitcoin (BTC) fell by over 8%, trading at $61,514.
Market Correction and Liquidation
This significant drop continued a trend that began on April 12, worsening the following day. Over these two days, the crypto market liquidated over $860 million in assets. Bitcoin’s price initially fell from $71,000 to $65,000, then dipped further to the $61,000 level.
The initial drop was attributed to the U.S. Federal Reserve’s announcement that it would not rush to reduce interest rates. This decision is influenced by persistent inflation levels causing domestic unease and affecting global policy expectations. The second drop was triggered by the escalating tension between Iran and Israel, with crypto traders reacting first as traditional financial markets were closed for the weekend.
Bitcoin’s Market Performance
Bitcoin was last seen trading at $64,123, a 5% decrease from 24 hours prior. In the seven-day and 14-day periods, the losses were 7.5% and 8.6% respectively. Over 30 days, the price dip amounted to just over 6%. Despite being down 13% from its highest ever price of $73,798 in March, Bitcoin’s value is still more than double compared to a year ago.
According to experts from QCP, the attack by Iran on Israel induced fear in the market. As a result, the value of Ethereum (ETH) also dropped to $2,850, and other cryptocurrencies decreased by an average of 20–30%.
Per CoinGecko’s data, only the Leo token (LEO), Bittensor (TAO), Celestia (TIA), and Wormhole (W) gained value in the last 24 hours among the top 100 largest cryptocurrencies by market capitalization. The total market cap of the sector fell by 5.2% to $2.43 trillion following the events of April 13.
Nevertheless, some analysts view this drop as normal. Benjamin Cowan, the founder of Into The Cryptoverse, pointed out that similar drops have occurred in the crypto market before. Echoing this sentiment, MicroStrategy’s Executive Chairman Michael Saylor asserted that chaos was beneficial for Bitcoin.
