Bitcoin plummets more than 8% on heels of Iran drone attack

After Iran’s April 13 drone attack on Israel, the crypto market reacted; Bitcoin (BTC) dropped more than 8% from its value to trade at $61,514.

The latest correction marked the continuation of a trend that started on April 12 and worsened the next day.

Analysts estimate the crypto market liquidated more than $860 million in assets over two days; the price of Bitcoin initially fell from $71,000 to $65,000 and then dropped even more to the $61,000 level. 

Market watchers have suggested the first drop was due to news from the U.S. Federal Reserve, which signaled it was not in a hurry to reduce interest rates.

This stance is driven by sticky inflation levels, which are causing unease domestically and influencing expectations regarding policy adjustments globally.

The second drop was due to the growing tension between Iran and Israel, with crypto traders being the first to react to the news since traditional financial markets were closed for the weekend.

Bitcoin, at last check, is trading at $64,123, which is still 5% lower than 24 hours ago. In the seven-day and 14-day timeframes, the loss is 7.5% and 8.6%, respectively. Over 30 days, the price dip amounts to slightly more than 6%. 

The world’s biggest cryptocurrency by market cap is also down 13% from its highest price ever, which was $73,798 in March, but it’s still more than double what it was a year ago.

Experts from QCP said that Iran’s attack on Israel caused a lot of fear in the market. Ethereum (ETH) went down to $2,850, and other cryptocurrencies went down by 20–30% on average.

Per CoinGecko, among the top 100 largest cryptocurrencies by market capitalization, only the Leo token (LEO), Bittensor (TAO), Celestia (TIA), and Wormhole (W) made gains in the last 24 hours.

The crypto data aggregator also indicated that the sector’s total market cap fell by 5.2% to $2.43 trillion following April 13.