Equities, crypto fall as attack on Israel begins Bitcoin briefly dips below $62,000. Solana continues to trade below $150.
Investors are fleeing equities and crypto as Israel braces for an attack from Iran.
According to data from CoinGecko, the worldwide market cap of all cryptocurrencies has fallen 5.5% since Monday.
Among the top 10 cryptocurrencies, Ethereum and Solana fell below $2,500 and $150 respectively.
According to an Israeli newspaper, sirens went off across Israel at 19:30 local time. HaaretzExplosions were heard in Jerusalem and Tel Aviv.
The missiles were fired just hours after news broke that Iran was preparing to attack Israel for repeatedly bombing its ally Hezbollah in Lebanon.
Israel's campaign against Iranian proxies in the Middle East — a group that includes Hamas in Gaza and the Houthis in Yemen — has long fueled fears that the attack could lead to direct conflict between the two regional powers.
As an all-out war could increase the odds of Republican Donald Trump's election in the United States presidential election in November, the prevailing sentiment is that Iran will keep its response relatively muted, said Lecker Capital founder Quinn Thompson.
“However, markets are bearish, and even with only a 20% chance of a big rise in the Middle East, given how bad the outcome is for markets, they should re-rate prices to reflect that,” Thompson said. News.
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“Additionally, it's a big week for economic data, culminating in another jobs report on Friday, so it's also fair to expect some general hedging ahead of that.”
Stocks fell on Tuesday, with the Nasdaq down 1.5% after markets opened. Meanwhile, investors ran away For more traditional assets such as bonds, the dollar and gold.
Bitcoin, often called “digital gold” by its proponents, also suffered losses on Tuesday, briefly falling below $62,000.
Thompson said that was expected. In both stocks and crypto, there is too much optimism and many assets are overvalued based on technical indicators, he explained.
According to Thompson, because the market is already overconfident and assets are overbought, it is likely to fall when there is any bad news.
Alex Gilbert News'Diffie correspondent from New York. You can reach him at [email protected].
