Bitcoin suffered a major sell-off on Saturday, extending its downward slide as escalating geopolitical tensions in the Middle East rattled global financial markets and triggered a broad risk-off sentiment among investors.
The world’s largest cryptocurrency fell to $64,004.74 per Bitcoin, marking a daily decline of $1,622.15, or 2.53%. Market analysts said heightened uncertainty following recent Israeli strikes and Iran’s subsequent military response has prompted investors to move away from volatile assets such as cryptocurrencies and seek safety in traditional havens.
Middle East Crisis Weighs on Global Markets
The Middle East witnessed a sharp escalation after Israel launched a series of attacks on Iranian-linked targets, citing security concerns. In response, Iran carried out retaliatory measures, intensifying fears of a broader regional conflict. The rapidly evolving situation has unsettled global markets, sending shockwaves across equities, commodities, and digital assets.
Investors remain cautious amid concerns that prolonged hostilities could disrupt energy supplies, trade routes, and global economic stability, thereby increasing volatility across all asset classes.
Bitcoin Extends Weekly Decline
Over the past seven days, Bitcoin has lost more than $3,655 in value, reflecting persistent selling pressure. The cryptocurrency experienced notable volatility throughout the week, briefly rebounding midweek before resuming its downward trajectory as geopolitical fears resurfaced.
Market participants said that macroeconomic uncertainty, combined with geopolitical instability, has reduced appetite for high-risk investments, particularly in the crypto market.
Sharp Monthly Losses Deepen Bearish Sentiment
On a monthly basis, Bitcoin has posted a steep decline of over $20,391, representing a nearly 32% drop over the past 30 days. The digital currency traded near $84,396 in late January, highlighting the scale of the recent correction.
Crypto analysts warn that further downside risks remain, especially if geopolitical tensions continue to escalate or global financial conditions tighten further. However, some investors view the current dip as a potential long-term buying opportunity, depending on how regional and global developments unfold.
Market Outlook
With Middle East tensions showing no immediate signs of easing, experts expect continued volatility in Bitcoin and the broader cryptocurrency market. Traders are advised to closely monitor geopolitical developments, global market cues, and regulatory signals before making investment decisions.
Disclaimer: Cryptocurrency investments carry significant risk due to extreme price volatility. Investors should conduct thorough research and consider their risk tolerance before trading.