Bitcoin had shown signs of roaring back to life at the beginning of the new month. However, to sustain its bullish momentum, certain market developments must occur to propel BTC’s price higher.
On Tuesday, Iran attacked Israel in response to the killing of the leader of Hezbollah, Palestine, and Gaza leaders. Shortly after the attack, BTC saw impressive gains before reclaiming key levels.
Middle East Geopolitical Tension Mounts
According to CoinMarketCap, BTC established an explosive surge, climbing above $62,000 in the early Asian morning hours. It later surged above $64,000, marking its highest October price.
At press time 1100 (UTC), Bitcoin is trading at $61,249, a 4% drop in a day accompanied by a 47% increase in daily trading volume. The unexpected decline in BTC coincided with the Israeli attack organized by Iran Islamic Revolutionary Guard Corps (IRGC).
The Iran troop target is to demolish Israeli military camps in the country’s capital. The IRGC’s vengeful acts caused significant damage to properties and a few nursing injuries.
Even though the IRGC ballistic attack was severe, the Israeli troops collaborated to bring down the over 200 projectiles fired by IRGC using advanced interceptors.
The Israeli troops confirmed that only one death was reported following the Iran unprecedented attack. The US national security adviser Jake Sullivan described the ballistic attack as ineffective. The adviser said the US naval team collaborated with the Israeli troops to intercept the missiles.
In a separate report, the IRGC team denied claims that the missiles didn’t hit the target. They argued that 90% of the missiles launched hit their targets. The Iran troops claimed that the attack was in response to the Israel war that has impacted the loss of lives in Lebanon, Palestine, and Gaza.
Will Israel Reteliate from Iran Attack?
The report shows that this was the first attack the Iran troops used hypersonic missiles dubbed Fattah-1. These missiles travel very fast, surpassing the speed of sound by five times.
With images and videos of the Iran attack becoming the centre of discussion on most media platforms, the Israeli head of state has reacted to the matter.
In his statement, Prime Minister Benjamin Netanyahu stated that Iran made a big mistake. The Prime Minister vowed to revenge and make Iran pay for the deadly attack. He argued that none of the Iran leaders understand the Israeli commitment to defend its country against external attacks.
Netanyahu remarks increased on-chain activities in prediction markets such as Polymarket. Data shows that 49% of Polymarket bettors believe that Israel will fight back against Iran before the end of this week. Even though it’s still unclear, Israel’s next move, the attack, attracted the attention of experts and economists.
Experts Explain Why BTC and Gold Reacted to the Iran Attack?
A statement from the renowned researcher Peter Chung reveals that assets such as gold and Bitcoin reacted to the Iran attack. The research noted that BTC dropped by 4% while gold surged by 0.8%.
He argued that the reaction demonstrated that BTC and Gold have different maturity phases. Compared to Bitcoin, Chung described gold as a more mature asset with a 5000-year store of value. This implies that gold has a minimal effect on incremental network changes.
While BTC has only 15 years of store of value, Chung forecasts Bitcoin will replicate gold in the future. Chung argued that the early mainstream adoption of BTC remains a narrative.
Elsewhere, analysts from K33 Research argued that crypto will only be affected by four factors: the US macroeconomic report, the presidential election, FTX repayments, and China’s liquidity measure.
The analyst argued that the geopolitical tension in the Middle East might have a minimal impact on investment assets. As experts share different opinions on how the Israel war will impact crypto, it’s important to understand Bitcoin remains a valuable asset for investors.
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