This weekend has brought significant turmoil to the crypto market, with Bitcoin and altcoin prices dropping drastically. The trigger for this market crash could be attributed to recent announcements by US Federal Reserve officials and reports of Iran preparing for a potential attack on Israel. While Bitcoin’s price took a hit, even gold experienced a drop in value when the markets opened, showcasing the broad impact of these events on various asset classes.
CryptoPotato covered the successive market crashes that occurred yesterday and today, resulting in a combined decrease of around $10,000 in Bitcoin’s price. Altcoins fared even worse, with substantial losses across the board. The overall market cap of cryptocurrencies has decreased by over $400 billion in just over 24 hours, plummeting to $2.350 trillion on CoinGecko from the previous day’s high of $2.8 trillion. The blame for this ‘red Friday’ was placed on the US Fed after officials declared no imminent plans to lower interest rates.
Today’s market crash appears to be influenced by external events, particularly the escalating tensions between Israel and Iran. Recent reports suggested that Israel’s actions in killing a senior Iranian commander have led to retaliatory measures being planned by Iran. As Israel’s army remains on high alert and the US increases its readiness following President Biden’s early return to the White House, the situation in the region remains tense and uncertain.