Written by: Techub News
Late Thursday, Israel's airstrike on Iran shook global financial markets, triggering a sell-off of risk assets, with Bitcoin's price dropping accordingly.
Three things you need to know about your assets:
1. After Israel launched airstrikes near Tehran and Tabriz, Bitcoin fell 5% in early Friday trading to $102,900.
2. Escalating tensions in the Middle East drove safe-haven funds into gold, with spot gold surging to $3,429 due to risk aversion.
3. US officials say they are closely monitoring the situation, with oil and stock futures prices sliding simultaneously.
Israel's airstrike on Iranian military targets escalated tensions in the Middle East, causing a widespread sell-off of risk assets, with Bitcoin's price dropping over 5% in early Friday trading. According to TradingView data, the world's largest cryptocurrency fell from its 24-hour high of $108,500 to $102,900.
Israeli officials confirmed that the airstrikes targeted Iranian military facilities near Tehran and Tabriz, describing it as a "preemptive" action against "increasingly serious threats". Prime Minister Benjamin Netanyahu stated at a Thursday press conference that Iran's nuclear ambitions are a "clear and real threat" and that preemptive actions would "continue for days until the threat is eliminated".
Iran has not yet made an official response, but its national media reported explosions in the affected areas and disrupted air traffic. Previously, Israeli defense officials met with top US defense officials. Washington has not made a clear comment on the airstrike, only stating that they are closely monitoring developments.
Ryan McMillin, Chief Investment Officer at Merkle Tree Capital, told Decrypt: "The latest escalation of tensions between Israel and Iran is impacting risk assets and oil markets, but we've seen such situations before." He added: "Similar events in April 2024 triggered weekend crypto market sell-offs, but the market quickly rebounded after tensions eased. These moments are often buying opportunities."
Jamie Coutts, Chief Crypto Analyst at Real Vision, agreed, noting that Bitcoin remains a risk-preference asset for short-term traders, but institutional investors' long-term allocation is gradually dominating its trend. He said: "This explains why Bitcoin follows risk assets in the short term, but outperforms gold in the long term."
Meanwhile, spot gold surged to $3,429 due to risk aversion, while US futures prices fell as investors worried about broader regional conflict risks.
