April 19, 2024
Bitcoin Falls to $27K Amid Hamas-Israel Conflict, Affecting Investor Confidence
Bitcoin News

Bitcoin Dips to $27K Amid Hamas-Israel Conflict

During the Asian trading hours on Wednesday, Bitcoin experienced a 1.2% decline, with its price hovering just above $27,000. This drop was attributed to deteriorating conditions in the Hamas-Israel conflict, which eroded investor confidence in riskier assets.

Traders had anticipated this downward movement earlier in the week, as they observed a shift away from traditional equities and risk assets in favor of safe-haven options like gold and oil. Gold and oil prices had surged by as much as 6% in the preceding week. Ether experienced a 2.2% drop, extending its weekly losses to over 5%, while XRP tokens led the decline in alternative cryptocurrencies with a 3% decrease.

Other major tokens, such as Polkadot’s DOT and Polygon’s MATIC, saw declines of 3%, and Tezos’ XTZ experienced an 8% drop. Render Network’s RNDR was the sole gainer among large-cap tokens, with a 3% increase over the past 24 hours.

FxPro market analysts noted in a daily report that Bitcoin’s attempt to breach the $28,000 level last week prompted a “wave of selling” that brought the price back to $27,000. This selling pressure was indicative of investors opting to take profits and suggested a cautious approach to risky investments. Interestingly, the pressure on Bitcoin coincided with a recovery in the risk appetite in traditional markets, as evidenced by Tuesday’s gains in U.S. stocks. The analysts attributed this phenomenon to the impact of the U.S. defaulting on its debt markets on Monday, rather than a significant shift of funds from one asset class to another.

Image by Freepik

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