Bitcoin, crypto down 4% as Israel-Iran conflict escalates
Crypto markets slumped on Oct. 1 amid geopolitical conflict between Israel and Iran in the Middle East.
The top 10 cryptocurrencies by market cap, including Bitcoin (BTC), fell as Iran launched hundreds of missiles towards Israel, shaking the already fragile market confidence. The attack prompted a sell-off in the crypto market cap by over 4%. Bitcoin dropped 3.9%, slipping below $61,200 after climbing to $65,000 last week.
Ethereum (ETH), (BNB), and Solana (SOL) were down between 6-7%. Stablecoins like Tether (USDT) and Circle USD Coin (USDC) slightly depegged, but maintain the $0.99 level.
News of ballistic missile attacks during the ongoing Middle East unrest also rattled the crypto-mining sector. At one point, shares of Bitcoin miner Marathon Digital dropped by approximately 9%, and fellow BTC mining firm CleanSpark also saw a 6% decrease in stock prices, according to Yahoo Finance.
Tyr Capital CIO: Bitcoin’s the best bet amid Middle East conflict
As the turmoil threatened global economies and liquidity fled markets, Tyr Capital CIO Ed Hindi opined that Bitcoin was the best bet for investors looking to safeguard wealth. Hindi declared that geopolitical uncertainty in the Middle East would only further legitimize Bitcoin’s value proposition and attract more investors to the crypto ecosystem.
Bitcoin is often regarded as an inflation hedge or digital gold, and, according to MicroStrategy executive chairman Michael Saylor, it has outperformed the S&P 500 in recent years.
In Hindi’s words, Bitcoin is one of the top assets to consider in the event of a broadening crisis within the Middle East and Europe.
Investors and consumers are slowly waking up to the reality that the world is going into a period of extreme instability. Fully allocating your portfolio to the traditional financial system is now a risky one-sided bet. The ongoing wars and tensions in Europe, the Middle East and Asia are hurting consumer confidence and their blind faith in their respective governments.
Ed Hindi, Tyr Capital CIO