Bitcoin prices took a sharp dive over the weekend in response to escalating tensions in the Middle East. The news of a major Iranian drone and missile attack on Israel triggered a sell-off, with Bitcoin dropping as much as 8% on Saturday evening.
This marked the steepest decline for Bitcoin in over a year. Other digital currencies like Ethereum also experienced heavy selling, with some dropping by up to 10%.
However, Bitcoin prices began to recover on Sunday morning, climbing back above $64,000. This suggests a possible initial panic reaction by investors, followed by a wait-and-see approach as the situation unfolds.
Also Read: Bitcoin Tumbles Over 5% in 24 Hours, Miners Selling May Be a Key Culprit
The attack itself was the first direct strike from Iranian territory on Israel. Israel reported successfully intercepting most of the incoming threats, while Iran launched the attack in retaliation for a suspected Israeli strike that killed Iranian officials in Syria.
The geopolitical uncertainty caused by the attack impacted not just cryptocurrencies, but also the Iranian Rial which fell to a record low on the unofficial market.
