Bitcoin drops 7.7% amid Middle East conflict tensions

Last Saturday (13), the Bitcointhe world's largest cryptocurrency by market capitalization, recorded its biggest drop in more than a year, sparking concerns about the escalation of conflict in the Middle East following Iran's attack on Israel.

The digital currency plunged 7.7% on Saturday, the biggest drop since March last year, while the entire cryptocurrency market also fell.

Despite this, the Bitcoin managed to recover some of the losses and was trading at US$64,319, other major cryptocurrencies such as Ether, Solana It is Dogecoinalso recorded losses on Saturday.

Attack on Israel

Iran launched a series of more than 200 drones and missiles at Israel on Saturday in retaliation for an Israeli attack on its embassy compound in Damascus on April 1 that resulted in the deaths of two senior Iranian commanders and other members of its elite force.

In recent days, concerns about increasing geopolitical conflict in the Middle East have left their mark on US markets. The Dow Jones index registered a drop of 475 points on Friday (12), in response to statements from the White House about US and Israeli preparations for a possible attack by Iran.

Experts shared with investors their concerns about the geopolitical conflict, highlighting that it could have a significant impact on the global economy if oil and gas prices increase too much.

_{Possible escalation of conflicts in the Middle East impacted the price of Bitcoin (Photo: disclosure/Unsplash/Michael Förtsch)}

Tensions between Israel and Iran

Iran's retaliatory strike on Saturday was seen as the first time Tehran attacked Israel directly from Iran, rather than relying on proxies in Lebanon, Syria and elsewhere. This has led to fears of war between Iran and Israel.

Halving and possible spread of war

Bitcoin hit a high of $73,805.27 in March after the UK financial services regulator allowed applications for exchange-traded notes backed by cryptocurrency assets to trade on the London Stock Exchange.

The rise was also driven by strong demand for exchange-traded funds. Bitcoin in the USA, approved in January.

What is expected halving of Bitcoin This month, when the amount paid to miners is reduced in a move scheduled every four years to reduce supply and maintain its scarcity value, also contributed to the rally.

Featured Photo: Bitcoin drops drastically after Iran attacks on Israel (Reproduction/CoinMarketCap)