Iran has launched a drone attack against Israel, causing several neighboring countries to close their airspace. This action provoked a strong reaction on the cryptocurrency market, with a sudden drop in the price of Bitcoin and altcoins. More than $800 million was liquidated in the aftermath.
The conflict between Iran and Israel impacts the crypto market
Just before 9pm, Iran launched a drone attack against Israel, prompting many neighboring countries to close their airspace. According to various sources, the drones in question are expected to arrive at their destination around 2 a.m., while missiles have also been launched by Iran in parallel.
The cryptocurrency market reacted sharply, with the Bitcoin price losing over $5,000 in the space of an hour. Many altcoins saw their prices plummet by more than 15% within an hour of the attack.
The entire market then stabilized shortly before 10 p.m., but not without difficulty.
Bitcoin price evolution
According to Coinglass data, more than $800 million was liquidated this evening, after a similar amount had already been liquidated last night.
We’ll have to wait until the markets reopen on Monday to see how the news will be received on the traditional stock market, as the cryptocurrency market is the only one that never closes.
According to Bloomberg, should the escalation between Iran and Israel continue, a spike in the price of a barrel of oil could be on the cards. In addition, the long-awaited FED interest rate cut could be delayed.
With the arrival of the Iranian drones expected around 2 a.m., tensions could continue to rise overnight. Iran has warned that countries opening their airways to Israel will be punished, while some Arab countries, the USA and the UK have already announced that they will help intercept Iranian drones and missiles.
Around 11.50pm, many media outlets reported that Iran had begun launching ballistic missiles at Israel, after sending a first salvo of cruise missiles.
