Bitcoin and Ether rebound as geopolitical tensions ease

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15th April 2024 – (Hong Kong) Bitcoin (BTC) has surged above $65,000, while ether (ETH) has reclaimed the $3,100 mark, indicating a return to stability in the cryptocurrency market. The recent volatility stemmed from Iran’s large-scale drone and missile attack on Israel, though the majority of the attack was successfully countered by Israel’s air defence systems.

Over the weekend, Bitcoin temporarily dipped below $62,000 as geopolitical tensions rattled the markets. However, the situation has since calmed, with the United States ruling out participation in an Israeli counter-attack on Iran, as reported by Al-Jazeera.

Traders on Polymarket have significantly reduced their expectations of Israeli military action against Iran by 15th April, with the likelihood dropping from nearly 57% in the immediate aftermath of Iran’s missile attack to just 4%.

During the height of the tensions, PAXG, a tokenized digital asset backed by gold, traded at a 20% premium compared to physical gold. Crypto traders sought the safety of the precious metal amidst the risk-off sentiment.

Prior to the escalation of tensions, the digital asset market already faced significant selling pressure due to the U.S. tax season and the anticipation surrounding the halving event.

Traders are now looking forward to the potential launch of Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong this week. These ETFs could unlock up to $25 billion in demand, providing Chinese traders with easier access to digital assets.