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Compared to Monday, the price of BTC has fallen 2.50%.
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In contrast, the price of oil rebounded upwards in the midst of the war in the Middle East.
The price of Bitcoin (BTC) fluctuates near $61,900. Just 24 hours ago, the digital currency was trading for $64,000. The decline is directly linked to the escalation of the war conflict that is taking place in the Middle East and whose protagonists are the Hezbollah organization, Israel, Lebanon and Iran, among other nations and armed groups.
The following graph shows the price behavior that it has had BTC on the last day:
The price of bitcoin has fallen 2.50% compared to Monday. Source: CoinMarketCap.
In the last hours, Israel received a missile attack coming from Iran, a nation that supports Hezbollah, exacerbating tensions in the region. Yesterday, the Prime Minister of Israel, Benjamin Netanyahu, warned that would respond to any Iranian aggressionalso promising freedom for the people of the Persian country in the near future. This context of threats and retaliation has generated instability in global financial markets, directly affecting volatile assets like bitcoin.
The current conflict in Israel has deep roots. Israel seeks security and recognition of its right to exist within secure borders, while Hezbollah, with the support of Iran, seeks the liberation of territories it considers occupied and resistance against what it perceives as Israeli oppression. Lebanon, home of Hezbollahis in a complex position due to the influence of this group and the historic enmity with Israel, exacerbated by Iranian support.
In contrast to the fall of bitcointhe oil market responded in the opposite way to the conflict. The price of oil saw an increase of 3.50% on average in a single day, with Brent and WTI trading at $74.2 and $70.54 per barrel, respectively, at the close of this report, according to data from PrecioPetroleo.net.
This increase is explained by the perception of instability in the Middle East, a crucial region for the world’s oil supply, which generates uncertainty and increases speculative demand.
As CriptoNoticias has explained, the reaction of the bitcoin market to geopolitical conflicts like this is due to its nature as a refuge asset in some scenarios, but also to his sensitivity to liquidity and risk aversion.
In times of global tension, investors can seek liquidity, selling volatile assets and finding refuge in others universally considered more stable, such as Treasury bonds or gold.
On the other hand, oil, being a physical and essential good for the global economy, tends to rise in price in the face of any threat to its supply, given concerns about possible disruptions to transportation or production.
The price of oil experienced an increase of 3.50% on average in a single day. Source: PrecioPetroleo.net.
This price dynamic reflects the interconnection between financial markets and geopolitical events, where regional security and stability can dramatically influence both tangible and intangible assets.
This article was created using artificial intelligence and edited by a human Editor.
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