Following reports of Israeli missile strikes on Iranian targets and retaliatory drone attacks by Iran on Israel, major cryptocurrencies, including Bitcoin and Ether, have seen sharp declines. Bitcoin dropped 2.64% to $60,726, while Ether slipped below $3,000 amid escalating tensions.

Middle East Tensions Spark Massive Crypto Sell-Off, Bitcoin and Ether Prices Plunge

According to ABC (via The Block), explosions have been reported in Iraq and Syria, but US officials have not confirmed them.

The world's largest cryptocurrency plummeted 2.64% to $60,726 in the previous hour, while ether lost 3.6% and slipped below the $3,000 resistance line, according to The Block's price website. At the time of publication, the price of ether was $2,925.

Most other crypto tokens have dropped 3% or more of their value in the last hour, indicating that investors are rushing to exit what they consider dangerous investments.

“Continued geopolitical unrest may fuel further risk-off sentiment in financial markets, potentially leading to continued selling pressure on cryptocurrencies as investors seek safer assets,” BTC Markets’ Head of Marketing Rachael Lucas told The Block. “This could overshadow the bull run that cryptocurrencies have been experiencing in the first quarter of the year.”

On the other hand, Lucas believes that if tensions in the region worsen, investors may turn to Bitcoin and other cryptocurrencies as an alternative store of value. The GMCI30, an index of the top 30 cryptocurrencies, lost 2.50% in the last 24 hours.

The crypto market fell sharply over the weekend, along with other risk asset markets, after Israel said Iran had launched "dozens" of drone assaults on the country. Bitcoin experienced an 8% selloff, while Ethereum experienced a 9% drop. On April 22, U.S. markets slumped on broader concerns of crisis escalation between Israel and Iran.

Bitcoin and Ethereum Nosedive Following Iranian Drone Strikes on Israel

It was reported last week that many cryptocurrencies, including Bitcoin and Ethereum, have plummeted in value today after the Israeli military claimed Iran launched "dozens" of drones at the country in an attack.

Bitcoin's price, which peaked today at over $68,000, has fallen drastically in the last hour to roughly $62,000 as of 4:50 p.m. ET, according to The Block's Price Page, representing an almost 8% drop. Ethereum fell 9% to almost $3,000, while other tokens, such as BNB and Solana, had double-digit percentage drops.

According to The Block's data, the cryptocurrency market is down 8% on April 13. While the geopolitical events are not directly related to cryptocurrency, traditional markets were closed last weekend, making it unclear how traders in other asset classes would react to the news.

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