Bitcoin experienced a sharp decline of more than 8.4% on April 13 as a result of Iran’s attack on Israel, which intensified geopolitical tensions in the Middle East.
The price of Bitcoin (BTC) swiftly dropped from approximately $67,000 to $61,625, eradicating more than $130 million in market capitalization within minutes following news of the attack.
The negative impact of the sell-off extended to other cryptocurrencies as well. At the time of writing, Ether (ETH) was down 9.81% to $2,927, while Solana’s (SOL) value sank by 15.96% to $129. According to CoinMarketCap data, the overall market capitalization of the global crypto market declined by 8.19% to $2.23 trillion.
Iran’s launch of drones towards Israel on Saturday, April 13, as reported by Bloomberg, was seen as retaliation for a prior attack conducted by Israel in Damascus, Syria. The Israeli attack resulted in the deaths of seven Iranians, including two generals.
In addition to the airstrikes, Iranian authorities reportedly seized a cargo ship owned by an Israeli billionaire.
On April 12, United States President Joe Biden issued a warning that Iran would launch attacks in the near future, emphasizing the U.S.’s commitment to defending Israel. President Biden stated, “We are dedicated to Israel’s defense. We will support and help defend Israel, and Iran will not succeed.”
The conflict between Iran and Israel has significantly heightened tensions in the region. The U.S. has reportedly been attempting to prevent such escalation since the terrorist attacks carried out by Hamas on October 7, 2023, which sparked an ongoing conflict between Israel and Hamas.
U.S. officials have been urging Israel to refrain from further escalating tensions in response to Iran, as revealed by a government source to CNN. These officials also expressed frustration with the lack of prior information provided by Israel regarding its airstrike in Damascus. Sources stated that Israel only notified a U.S. official when its planes were already en route to Syria.
“We were not informed in advance that Israel was planning to carry out this airstrike,” the official stated. “Israel reached out to a U.S. official only minutes before the strike, when their planes were already in the air. They did not provide any details about the targets or location, and the strike was already underway before the U.S. government could be notified.”