The escalation of tensions in the Middle East has dealt a direct blow to the cryptocurrency market. The price of the leading cryptocurrency, Bitcoin, fell below $100,000 on the 22nd (local time).
According to the U.S. cryptocurrency exchange Coinbase, at 10:25 p.m. (Eastern Time) that day, the price of one Bitcoin was $99,800, a 2.93% decrease compared to 24 hours earlier. This is the first time it has fallen below $100,000 since May 8, and it has dropped more than 10% from its all-time high of $119,900 recorded on May 22.
The cause of this sharp decline is attributed to the geopolitical risks that arose following the U.S. attack on Iranian nuclear facilities. After the attack, Bitcoin fluctuated between $102,000 and $103,000 without significant changes, but the potential for Iranian retaliation and concerns over further U.S. military responses caused the decline to worsen.
Alex Kuptsikevich, a senior market analyst at f(x), noted, "If the tensions in the Middle East spread to other countries or if the Strait of Hormuz, a crucial route for global oil, is actually blocked, the global risk appetite will worsen," suggesting the possibility of further declines in Bitcoin.