The geopolitical wars between Iran and Israel have caused a lot of volatility in the cryptocurrency market. Despite this, the markets are no longer tense as the United States has persuaded the Israeli government to end the war.
Geopolitical Consequences on the Crypto Market
According to CoinDesk, Bitcoin climbed above $65,000 and Ether to $3100 after Iran’s ongoing drone and missile attacks on Israel were successfully contained. As an effect of the war, cryptocurrencies, including Bitcoin and Ether have faced massive instability. Bitcoin shot down to $62,000, in the starting phase, raising market pressure. Regardless of this, the US swayed Israel to withdraw from the war with Iran.
Additionally, the consequences of war drew the trader’s attention towards, the PAXG a digital gold. As per the observer’s data, PAXG was exchanged 20% more than regular.
The co-founder and CEO of Unlimited Funds, Bob Elliott, shares his opinion with X. “Bitcoin may be many things, but it is not a geopolitical hedge,”
Other Factors responsible for Crypto flux
Before the Iran and Israel wars, factors including the taxes and halving events have already shaken the crypto market and have immensily caused crypto volatility.
ETFs Authorization Triggers Bitcoin Demand
Traders are now interested in finding alternative ways to invest in cryptocurrencies with Exchange Traded Funds (ETFs) now available in Hong Kong, China. According to Matrixport, the introduction of these ETFs in Hong Kong has the potential to generate around $25 billion in demand.
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