In a surprising turn of events, Bitcoin has rebounded from a recent selloff amidst heightened volatility in asset markets due to military escalation in the Middle East. The world’s most popular cryptocurrency rose as much as 5.9% and was trading around $64,600, while smaller coins like Polkadot and Uniswap also saw rallies.
The tension in the markets comes as Iran launched attacks using drones and missiles against Israel, triggering concerns among investors. Crypto traders were quick to react to this major geopolitical event before traditional markets even opened. In fact, a whopping $1.5 billion of bullish crypto wagers were liquidated in the heaviest two-day liquidation in at least six months.
Stock markets in the Middle East were mostly in the red, with Israel equities trading slightly lower. Speculation is rife about Bitcoin potentially acting as a safe haven in times of turmoil amidst the military escalation. However, Bitcoin is currently down from its mid-March record, with demand for US exchange-traded funds easing.
Speculators are eagerly awaiting the upcoming Bitcoin halving, expected around April 20. This event has historically acted as a tailwind for Bitcoin prices, but doubts have arisen amid the recent peak. It remains to be seen how Bitcoin will navigate through these turbulent times in the global markets.
“Social media scholar. Reader. Zombieaholic. Hardcore music maven. Web fanatic. Coffee practitioner. Explorer.”