"Hmm, if BTC suddenly goes down, where will it go?"
The effects of a war in the Middle East that could spill over into the entire cryptocurrency market could cause risky assets like Bitcoin (BTC) to face significant plunges in the short term.
The conflict that broke out last Saturday has continued into the fourth day when there was a surprise attack from Hamas on the southern cities of Israel, where the death toll for both sides is almost 1,600.
According to Greta Yuan, head of research at digital asset platform VDX said that global markets are worried that the conflict will affect nearby oil-producing countries, so investors are still in a sensitive state.
In the last two days, the crypto market declined 2% as traders focused more on oil, but it should be noted that traditional equities have seen a decline as the war could affect international trade.
Higher-priced futures traders saw more than $100 million in liquidations in the 24 hours from Monday, but the crypto market was able to hold its ground despite various headwinds.
However, some traders are of the view that investors at this time should keep an eye on the changing oil and energy markets to see where BTC is headed.
This is because the rise in oil prices can trigger selling momentum in equities further fueling expectations of a tighter monetary policy, and this means crypto markets including BTC face the greatest risk.
As of this writing, BTC price has plunged by 0.56% to $27,432 in the last 24 hours with a market cap of $535 billion but is still up 0.44% over the past week.
