The weekend was marked by Operation Midnight Hammer, a major attack led by the United States against three Iranian nuclear sites. This is the first time the United States has directly struck Iran. In an interventionist move, Donald Trump explained that he wanted to "destroy Iran's nuclear enrichment capabilities and end the nuclear threat posed by the world's leading state sponsor of terrorism." In response to the US offensive, Iran is preparing to close the Strait of Hormuz, a strategic passage that handles approximately 20% of the world's maritime oil and gas. According to The Kobeissi Letter, "the market still expects a short war."
The earthquake has not spared the cryptocurrency world. After more than 40 days above $100,000, the Bitcoin price has contracted to around $98,000. Nearly a billion dollars of long positions were liquidated on exchanges such as Binance.
The queen of cryptocurrencies managed to rise above the symbolic threshold of $100,000 a few hours later. At the time of writing, Bitcoin is stagnating around $101,000. Before the US strikes on Iran, Bitcoin was trading above $105,000. Given the weekend's events, Bitcoin's decline remains rather moderate. However, BTC is still far from its all-time high of $111,000.
For investor Arthur Hayes, the Bitcoin decline is only temporary and does not call into question the price's rise since last year. Most analysts believe that Bitcoin remains in a bull market as long as it does not fall below $90,000. Asked by Decrypt, Pav Hundal of Swyftx points out that "Bitcoin is an emerging asset class, so it's not surprising that the market is looking to reduce risk" in the current environment. Despite geopolitical uncertainty, the total capitalization of the crypto industry still exceeds $3 trillion.
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