The largest digital currency experienced a 7.7% decline on Saturday, marking its most significant pullback since March 2023. However, it managed to partially recover, trading at approximately $63,230 by 11:36 a.m. in Singapore on Sunday. Concurrently, other prominent cryptocurrencies like Ether, Solana, and the popular Dogecoin among meme enthusiasts also recorded losses over the past 24 hours.

Read More: Israel Iran War Live Updates

In response to a strike in Syria that resulted in the deaths of high-ranking Iranian military officials, Iran launched a series of drone and missile attacks on Israel, escalating tensions in the region to a critical juncture. The weekend trading activity in digital assets offers insights into potential market sentiment before traditional markets resume trading on Monday, albeit subject to fluctuations during this interim period.

Crypto Tracker

84 (0.17%)

47,122 (-3.96%)

5,393,641 (-4.51%)

257,129 (-5.48%)

11,962 (-6.37%)

Zaheer Ebtikar, the founder of crypto fund Split Capital, remarked that the continuation of the crypto sell-off hinges on further escalations in the conflict, stating that market participants are keenly observing the market dynamics leading up to Monday.

Amid Israel’s anticipation of potential attacks, the heightened tensions impacted stock markets negatively on Friday, prompting investors to seek refuge in assets like bonds and the dollar. Data from Coinglass revealed that approximately $1.5 billion in bullish crypto positions through derivatives were liquidated over the course of Friday and Saturday, marking one of the most substantial two-day liquidation events in the past six months. Ebtikar highlighted that excessive leverage in the market has contributed to the recent price deterioration of digital assets.

Bitcoin has retraced approximately \(10,000 from its peak in mid-March when it reached \)73,798. The introduction of dedicated US exchange-traded funds earlier this year propelled the token to record highs; however, recent inflows into these products have moderated. Speculators in the crypto space are eagerly anticipating the upcoming Bitcoin halving, scheduled around April 20, which will halve the new token supply. While historical trends suggest that halving events boost prices, uncertainties loom as Bitcoin recently achieved a new all-time high, casting doubt on a similar price surge post-halving.