Bitcoin And Ethereum Prices Are Recovering Again, But Will The US-Israel War Derail It?

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. The Bitcoin and Ethereum prices plunged sharply over the weekend as missiles flew across the Middle East, exposing just how quickly geopolitical crises can send shockwavesthrough the financial markets. A joint US and Israel strike on Iran triggered a violent selloff that wiped out billions of dollars from the crypto market in a matter of hours. Fresh reports now indicate that Bitcoin and Ethereum are beginning to recover. Still, with geopolitical tensions continuing to escalate, it remains uncertain whether this renewed momentum can be sustained.  Bitcoin Price Recovers After US-Israel War Fueled Crash

Geopolitical shockwaves rattled global financial markets this past weekend as a joint US and Israeli military operation against Iransent Bitcoin into a sharp but brief decline, wiping out millions of dollars in long positions before a partial recovery took hold. Notably, BTC plummeted to nearly $63,000overnight following the coordinated strikes on Iranian military targets.  Related Reading Bitcoin Has Officially Entered Bearish Territory, And It’s Headed To $35,000; Chart Shows 2 days ago

Within 45 minutes of Israel launching its assault, Bitcoin shed $2,500 in value, while more than $200 million worth of long positionswere liquidated in just one hour. The broader crypto market saw roughly $72 billion wiped outamid the chaos. The sell-off was swift and severe, with major exchange players including Binance, Coinbase, and trading firm Winternute offloadingmore than $3.5 billion in Bitcoin within a 20-minute window. This further added downward pressure to the already declining and volatile market.

Despite the carnage, Bitcoin has since climbed back above $66,000, according to CoinMarketCap data, though volatility remains elevated as the Middle East conflictshows no signs of immediate resolution. 

Market analysts were quick to explain the technical reasons behind BTC’s price decline. One expert noted that Bitcoin did not crash for no reason. She explained that because it was the most accessible and highest volume asset that trades around the clock, it was significantly exposed to weekend fear and panic sellingcompared to other major asset classes.  Ethereum Price Rebounds After Massive Sell-Off

Ethereum also took a hit alongside Bitcoin following news of the US-Israel war. ETH droppedroughly 10% within just one hour of the news breaking, falling below $1,900 and erasing all the gains it had made when it briefly touched $2,000 last week. At its lowest point, Ethereum fell to around $1,850 before rebounding back above $1,950.  Related Reading Are Institutions Killing Bitcoin And Ethereum? Here’s How They’ve Fared Since Companies Got Involved 3 days ago

Notably, the crash triggered sharp declinesin Ethereum derivatives markets, with millions of dollars in liquidations. A large percentage of those liquidations came from long positions, suggesting that traders who had bet on Ethereum rising were hit the hardest. 

In the broader context, the Ethereum price was already experiencing a downturn, meaning the geopolitical shock had compounded an already painful downtrend for ETH holders. In addition to Ethereum, other altcoins, such as XRP, saw major sell-offsas geopolitical tensions rose. BTC trading at $66,307 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Pixabay, chart from Tradingview.com