Bitcoin Sinks As Israel Escalates Iran Standoff With Airstrikes

Bitcoin and other cryptocurrencies sank after Israel launched airstrikes on Iran in a major escalation.

The largest digital asset slid as much as 3% on Friday morning in Singapore to dip below $103,000, while smaller cryptocurrencies nursed steeper losses, according to data compiled by Bloomberg. Second-ranked token Ether at one point shed about 6.9% of its value.

The losses came after explosions were heard in Tehran, according to local media. Israeli Defense Minister Israel Katz said that he’s declaring a special state of emergency due to Israel’s “preemptive strike against Iran.” Israel is anticipating a retaliatory drone and missile attack, Katz said.

“Crypto is reacting negatively to news of Israel strikes in Iran, in line with major risk assets,” said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for crypto derivatives. “We expect to see technical support around $101,000, but geopolitical news will drive price action from here in the short-term.”

Stocks fell along with equity-index futures while investors rushed to the safety of havens such as Treasuries in the immediate aftermath of the strikes. Crude oil jumped more than 9% while gold also rose.

“While we await further news and a potential response from Iran, we are likely to see a further deterioration in risk sentiment as traders cut risk seeking positions ahead of the weekend,” Tony Sycamore, market analyst at IG, said in a note.

Bitcoin was trading at $103,130 as of 9:40 a.m. in Singapore on Friday.