Israel's airstrike on Iran, is your Wallet suffering even more losses?

Israel's airstrikes on Iranian military targets have escalated tensions in the Middle East, leading to a widespread dumping of risk assets, with Bitcoin's price falling over 5% early on Friday.

Written by: Techub News

Later on Thursday, Israel launched airstrikes against Iran, shaking the global financial markets and triggering a wave of selling in risk assets, causing the price of Bitcoin to fall.

Three points you need to know regarding your assets:

1. After Israel launched airstrikes near Tehran and Tabriz, Bitcoin fell 5% to $102,900 in early trading on Friday.

2. The escalation of tensions in the Middle East has driven safe-haven funds into gold, with spot gold skyrocketing to $3,429 due to risk aversion.

3. U.S. officials stated that they are closely monitoring the situation, as oil and stock futures prices are declining simultaneously.

Israel's airstrike on Iranian military targets has heightened tensions in the Middle East, leading to a widespread dumping of risk assets, with Bitcoin price falling over 5% early Friday morning. According to TradingView data, the world's largest cryptocurrency dropped from a 24-hour high of $108,500 to $102,900.

The Israeli officials confirmed that the airstrike targeted Iranian military facilities near Tehran and Tabriz, stating that this move is a "preemptive" action against the "growing threats." Israeli Prime Minister Benjamin Netanyahu stated at a press conference on Thursday that Iran's nuclear ambitions are a "clear and present danger," and that the preemptive actions will "continue for several days until the threat is eliminated."

Iran has yet to issue an official response, but its state media reported that explosions occurred in the affected areas, leading to disruptions in air traffic. Previously, Israeli defense officials held meetings with senior officials from the U.S. Department of Defense. Washington has not made any clear comments on the airstrike, only stating that it is closely monitoring the situation.

Ryan McMillin, Chief Investment Officer of the crypto fund manager Merkle Tree Capital, stated in an interview with Decrypt: "The latest escalation of tensions between Israel and Iran is impacting risk assets and the oil market, but we have seen this situation before." He added, "A similar incident in April 2024 triggered a weekend dumping in the crypto market, but after the situation eased, the market rebounded quickly. These moments are often great buying opportunities."

Jamie Coutts, Chief Crypto Analyst at Real Vision, agrees and points out that Bitcoin is still considered a risk-on asset in the eyes of short-term traders, but the long-term allocation by institutional investors is gradually dominating its trend. He stated, "This explains why Bitcoin may fluctuate with risk assets in the short term, but can outperform gold in the long term."

At the same time, spot gold surged to $3,429 due to safe-haven demand, while U.S. futures prices declined as investors worried about broader regional conflict risks.