It has probably not escaped your notice that the tension between Iran and Israel has increased considerably. As a result, selling pressure on the current number one cryptocurrency, Bitcoin (BTC), has also increased significantly, sending the coin down towards $61,700.

This in turn has affected the entire cryptocurrency market, with altcoins such as Ethereum (ETH), Cardano (ADA), Solana (SOL) and Dogecoin (DOGE) all down double digits.

Rising global tensions

Israel and Palestine have been fighting for decades. However, the conflict has received a lot of media attention in the past year, which has significantly increased global pressure for a solution. Various countries have therefore started to get involved, with the United States supporting Israel, while Iran supports the opposing party, Palestine.

However, recently there has been a deadly attack from Israel on a consulate building in Damascus, from where Israel believes Iran was directing its secret arms shipments to Iranian allies in Lebanon and Syria. This attack killed a senior commander of the Iranian army, prompting the world to expect a response from Iran.

Drones on their way to Israel

Currently, several major media outlets are reporting that drones are currently en route to Israel from Iran. According to Channel 12 TV news, the drones launched by Iran were expected to reach Israel at 2 a.m. local time (1 a.m. Dutch time).

However, US President Joe Biden recently indicated that he will help Israel if Iran decides to attack the country. He indicated that he expects Iran to attack Israel “sooner or later,” raising fears of Iranian retaliation. However, he continued:

“We are committed to the defense of Israel. We will support Israel. We will help defend Israel, but Iran will not succeed.”

Caution advised for crypto investors

Due to these geopolitical tensions, Bitcoin has lost a significant portion of its gains and may even dip below $60,000. It is therefore wise to wait and see how this news will develop, as a major war between world powers will also have a major impact on the global economy. So be careful!


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