London, England – Bitcoin made a strong recovery after facing a significant selloff, signaling potential volatility in various asset markets due to escalating tensions in the Middle East.
On Sunday morning, the largest cryptocurrency surged by as much as 5.9%, reaching around $64,600 in London. Other cryptocurrencies such as Polkadot and Uniswap also experienced significant rallies of more than 10%, while Ether saw a 5% increase.
The spike in Bitcoin prices came as Iran launched attack drones and missiles against Israel, following an earlier strike in Syria that resulted in the deaths of top Iranian military officials. This new phase of conflict in the Middle East has heightened concerns among investors about the stability of global markets.
David Lawant, Head of research at FalconX, noted that an unusual number of investors may be turning to cryptocurrencies to express their market views in response to the geopolitical tensions.
The tension in the region has already impacted stocks, with markets in the Middle East mostly in the red on Sunday. Israeli equities, in particular, experienced losses after initially gaining ground, reflecting the uncertainty surrounding the situation.
The potential for a significant military escalation between Israel and Iran poses a new challenge to the idea that Bitcoin and other cryptocurrencies serve as safe havens during times of turmoil. Speculators in the crypto market are closely monitoring the upcoming Bitcoin halving, which is expected to reduce the token’s new supply by half around April 20.
While Bitcoin has seen a decline from its mid-March peak, the market remains uncertain about whether historical trends related to the halving will continue to apply in the current landscape. The ongoing geopolitical tensions in the Middle East, combined with market fluctuations, are likely to keep investors on edge in the coming days.