Iran attack on Israel causes crypto to fall further, Bitcoin finds support around $61k, what will stock markets do tomorrow?

So the mullahs in Tehran did what the world feared and sent about 200 ballistic missiles, drones and cruise missiles to Israel’s territory overnight. According to Israeli and American media, most of those projectiles have been intercepted and the damage is minimal.

The crypto market responded with a further decline. Bitcoin plummeted (before recovering) and altcoins followed suit with an even bigger drop.

The Bitcoin price found support around the $61,000 level and is trading at $64,000 at the time of writing.

Altcoins died but if you look at #Bitcoin it really doesn’t look all that scary. pic.twitter.com/CSEo5xaWr8

— Nebraskangooner (@Nebraskangooner) April 14, 2024

Bitcoin ETFs adnd Netanyahu

The American stock markets already took into account the possibility of an Iranian attack on Israel on Friday and closed sharply lower. It will depend on the further course of events in the Middle East to see what they will do tomorrow but a positive day seems out of the question at the moment (although you never know).

American business media kept an eye on Bitcoin last night as the largest digital currency now gives an indication of how stock markets will react to world news (thanks to the large amounts of money from Wall Street that have drifted the crypto in recent months).

It is of course the other side of the ‘Bitcoin ETF’ coin. As Wall Street invested billions in Bitcoin in recent months, pushing the price to unprecedented heights, the crypto market now responds to geopolitical news just like the stock exchanges do. The price of Bitcoin in the coming days therefore depends on the goodwill of Israeli Prime Minister Netanyahu not to start World War III.

Memecoins

While Bitcoin is still looking at a loss of ‘only’ 7% in the last seven days at the time of writing, this is quite different for many altcoins.

not the bitcoin halving we wanted pic.twitter.com/qKxW5KhsoA

— Altcoin Daily (@AltcoinDailyio) April 14, 2024

As always, it was mainly the memecoins that saw the strongest decline. Dogwifhat, Bonk and Pepe rise very quickly during a green market, but do the same when the market turns red. Beware of volatility.