Bitcoin price tanks to $62K ascribed to geopolitical tension a week to BTC halving

FXStreet
Updated
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■  Bitcoin price dipped to $62,000 range on Sunday, after Saturday’s $60,660 intra-day low.

■  Geopolitical tensions between Iran and Israel pass as likely culprit for broader market dump.

■  Global cryptocurrency market capitalization has dropped by 5% amid rising uncertainty and apprehension.


Bitcoin (BTC) price is dumping, and with it, most players in the cryptocurrency market arena. It comes in the final week to the BTC halving, expected on April 20. As crypto markets bleed, capital appears to be shifting to precious metals.


Bitcoin dips amid ongoing geopolitical tensions


After the Russo-Ukrainian saga, the cryptocurrency market is experiencing the aftermath of geopolitical tensions, this time between Iran and Israel. As traders and investors watch Iran’s retaliatory attack as a major escalation and the fear of a larger war, there is growing uncertainty and apprehension in the market.


In the aftermath, Bitcoin price is pulling altcoins down with it, with the global cryptocurrency market capitalization dropping by over 5% to $2.28 trillion. Meanwhile, precious metals like gold and silver are rising.



Geopolitical tensions and conflicts can have varying effects on financial markets, including cryptocurrencies. The crypto markets are dumping because of a general atmosphere of fear and risk aversion in financial markets. This has investors seeking to liquidate their positions in cryptocurrencies to reduce risk and move towards more traditional safe-haven assets like gold and silver.


In the next few days, it would be critical to monitor:


●  Severity of the conflict


●  Global response


●  Market sentiment, and


●  Investor behavior


Conversely, geopolitical uncertainty or conflict could also bode well for alternative assets like Bitcoin, driving adoption like it did during the early months of the Russia versus Ukraine debacle.


Investors could turn to alternative assets like Bitcoin as a safe haven to protect their wealth from traditional market volatility. This could potentially drive up the demand for Bitcoin and other cryptocurrencies, leading to an increase in their value.


At the time of writing, Bitcoin price is trading for $63,266, as the bulls defend against further downside. However, the market is flashing red as global market capitalization nosedives.

BTC/USDT 1-day chart, Crypto total market cap

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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