The cryptocurrency market witnessed a sudden downturn over the weekend in response to reports of an alleged attack by Iran on Israel. This event had a profound impact on various digital assets, leading to significant declines in their values.

According to Iran’s state media, the attack, conducted via drones, was purportedly a retaliatory measure linked to a prior incident in Syria that resulted in the casualties of military officials, which Iran attributed to Israeli forces. The immediate aftermath of this news was evident in the market, with major cryptocurrencies such as Bitcoin BTC/USD, Ethereum ETH/USD, and Solana SOL/USD experiencing drops of 7%, 9%, and 16%, respectively.

Other cryptocurrencies like Dogecoin DOGE/USD and Shiba Inu SHIB/USD faced even more substantial losses, plummeting by over 20%.

This rapid market reaction underscores the susceptibility of cryptocurrency assets to global geopolitical events, particularly during periods when traditional financial markets are inactive.

The global crypto market swiftly declined by 9% following the announcement, serving as a stark reminder to stakeholders and investors of the volatile nature of digital currencies and their vulnerability to external influences.

As of the latest update, Bitcoin was valued at \(63,522.30, Ethereum at \)2,979.69, Solana at \(137.31, DOGE at \)0.1483, and SHIB at $0.0000211.

Zaheer Ebtikar, the founder of crypto fund Split Capital, shared insights with Bloomberg, suggesting that the continuation of the crypto sell-off would likely hinge on further escalations in the situation. He highlighted the overwhelming impact of leverage in recent days, contributing to significant price declines in digital assets.

Market participants are keenly observing the developments and preparing for potential market conditions on Monday amidst the heightened uncertainty.