The crypto market faced significant turmoil as news broke of Iran potentially launching a missile attack against Israel. Major cryptocurrencies, including Bitcoin and Ethereum, saw declines, while stocks in Coinbase and Bitcoin mining companies like Marathon Digital suffered as well.
On Tuesday, a U.S. official indicated that Iran was planning an imminent missile strike in retaliation to Israel's ground offensive in Lebanon. Shortly thereafter, the Israeli military confirmed that Iran had launched missiles.
According to a senior White House official, "The United States has indications that Iran is preparing to imminently launch a ballistic missile attack against Israel. We are actively supporting defensive preparations to defend Israel against this attack. A direct military attack from Iran against Israel will carry severe consequences for Iran," as reported by CNN.
In light of increased tensions and a possible escalation of the conflict in the Middle East, analysts suggest that the global economy may be adversely affected, which could further impact cryptocurrency prices.
Among Bitcoin miners, Marathon Digital (ticker MARA) was particularly hard hit, with shares dropping by as much as 9% to $14.84 before recovering slightly, according to Yahoo Finance. Other miners like CleanSpark (CLSK) fell nearly 6%, while Core Scientific (CORZ) and Riot Platforms (RIOT) saw drops of about 4%. Coinbase, the leading U.S. cryptocurrency exchange, experienced an approximate 8% decline in its shares on Tuesday.
After the initial reports of the missile threat, both the Dow Jones Industrial Average and S&P 500 saw drops but managed to recover slightly, maintaining stability even after Iran appeared to fire missiles at Israel.
Currently, the prices of Bitcoin and Ether have decreased by nearly 1.5% and 3%, respectively, according to The Block Price Page. Solana also saw a decline of about 4%.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block, which continues to operate independently. This article is for informational purposes only and does not constitute legal, tax, investment, financial, or other advice.
