The price of Bitcoin took a nose dive on Saturday following reports of Iran launching missile and drone attacks on Israel. Alongside the market leader, many other prominent cryptocurrencies also experienced a significant selloff as news of a brewing international conflict in the Middle East circulated on the internet.
Bitcoin Suffers Major Decline For Second Consecutive Day
According to multiple reports on April 13, Iran commenced a drone attack against Israel in retaliation to an attack on an Iranian diplomatic building in Syria on April 1 which claimed the lives of nine Iranian officers, including a highly ranked general in Iran’s Islamic Revolutionary Guards.
This incident marked Iran’s first-ever direct assault on the Jewish state following years of rising political tensions between both countries. With the Iranian forces confirming further missile attacks on “specific targets” in Israel, it is likely that both nations may be heading for a full-scale war.
Following reports of the drone attacks in the Middle East, Bitcoin’s price dropped by 8.07%, falling from $67,132.1 to $61,710.58, reflecting a high selling pressure. Interestingly, this price action marked the second consecutive day the maiden cryptocurrency suffered a significant loss following a 5% decline on Friday amidst minor turbulence in the US stock markets.
Generally, Bitcoin has shown an underwhelming performance in the past weeks, recording a 12.51% loss in the last month based on data from CoinMarketCap. The maiden cryptocurrency has struggled to replicate its bullish form seen at the beginning of 2024 when it achieved a new all time high price of $73,750.07. However, with the Halving event fast approaching, BTC investors are likely optimistic about a potentially massive price gain in the coming months based on historical price data.
Currently, Bitcoin trades at $63,943, showing a 3.61% gain from its earlier slump on Saturday. In tandem, the token’s daily trading volume is up by 22.46% and valued at $57.37 billion.
Bitcoin trading at $63,971 on the daily chart | Source: BTCUSDT chart on Tradingview.com
Altcoins Not Spared From Market Crash
Alongside Bitcoin, the price of altcoins also decreased significantly due to the escalated geopolitical tension in the Middle East. Ethereum, the most popular altcoin and second largest cryptocurrency, suffered a loss of 10.89%, falling as low as $2,880.16
Meanwhile, other prominent tokens such as Solana (SOL), XRP, and Avalanche (AVAX) also recorded price dips to the tune of 12.68%,18.11%, and 16.00%, respectively. Generally, the total crypto market cap declined by 7.78%, falling to around $2.2 trillion.
Featured image from Shutterstock, chart from Tradingview
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North Korea, also known as the Democratic People’s Republic of Korea, is under crippling sanctions for failing to adhere to UN Security Council resolutions. However, the nation has been able to circumvent the sanctions and develop its nuclear and missile arsenals. UN officials have warned that North Korea poses a significant cyber threat. North Korean hackers have managed to steal millions of dollars worth of cryptocurrencies from exchanges in the United States and Asia. The money is used to fund its missile and nuclear weapon program, reports Bbc.com.
UN officials have reported that between 2020 and mid-2021, cyber-attackers stole more than $50m (£37m) of digital assets. Such arracks are an essential source of revenue for North Korea for its nuclear and ballistic missile program. The findings were reportedly handed to the UN’s sanctions committee on Friday.
$400m worth of digital assets stolen last year
The report also highlighted a study published last month by the security firm Chainalysis which hinted that North Korean cyberattacks could have netted as much as $400 million worth of digital assets the previous year.
The UN reported in 2019 that North Korea had accumulated an estimated $2bn for its weapons of mass destruction programs by using sophisticated cyber-attacks.
North Korea is under sanctions for its nuclear and ballistic missile program. Despite crippling sanctions, Noth Korea has continued with its nuclear and missile development program. North Korea seeks material, technology, and funds overseas through cyber means and joint scientific research.
Marked augmentation of capabilities
The agency that monitors the sanctions’ implementation has hinted that Pyongyang has marked acceleration of missile testing. In one month, North Korea has conducted nine missile tests.
North Korea has significantly augmented its capability for rapid deployment, comprehensive mobility (including at sea), and improved resilience of its missile forces, the sanctions monitors said.
China and Russia have refused to sign a statement condemning the proliferation by North Korea. However, the US special representative for North Korea would meet with Japanese and South Korean officials later this week to discuss the situation.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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