The crypto market has experienced a sheer downturn just recently because of the reports that Iran launched ballistic missiles at Israel. The geopolitical tension rapidly influenced the market sentiment, driving the prices down in the entire crypto market as the retail investors are now overwhelmed with fear. With this, the excitement for October (Uptober) has also vanished as the Fear and Greed Index has turned neutral.
Recent Launch of Ballistic Missiles on Israel by Iran Push the Crypto Market into the Red Zone
Many prominent crypto tokens witnessed significant plunges. Binance Coin ($BNB) reportedly dipped by 3.70% to reach $552.80. Additionally, Bitcoin ($BTC) slumped below $62,000, indicating a 2.36% decrease. In addition to this, Solana ($SOL) saw a 4.80% decline due to which its price has lowered to $148.11. Apart from that, Ripple ($XRP) fell to $0.6008, denoting a 3.28% decrease in terms of value. This has also impacted the meme coins as $PEPE’s 3.59% dip has placed its price at $0.00001047.
Irrespective of the sheer price dip, market onlookers highlighted that overall trading volume maintained a relatively low pace. This signifies that the panic among the retail investors drove the sell-off. This paved the way for a significant shift in big crypto amounts. Large crypto holders or whales seemed to leverage this scenario, purchasing tokens while retail traders reportedly liquidated high-leverage positions thereof while fearing further losses.
Crypto Onlookers Show Confidence in a Likely Reversal
Notably, Bitcoin’s Relative Strength Index revealed pointed out a bullish divergence. This means that the RSI was spiking while prices were plunging. This could signify a potential reversal in the coming time.
Market onlookers believe that this may shortly end. Up till now, no casualties have been reported from Iran’s missile attacks. It is because Israel shifted all civilians to bomb shelters. Nonetheless, the rapid reaction of the overall crypto market indicates these assets’ sensitivity to worldwide political developments. In line with the historical data, the crypto market often responds rapidly to such war news, but can also bounce back just as quickly.
Elon Musk also posted a video of missile strikes on his official X account at the time of attack without using any caption. However, he deleted the tweet within a few minutes.
