The Escalating Conflict in Israel: Will This War Affect Bitcoin and Cryptocurrencies?

• As tensions between Israel and Hamas escalate, the situation has become increasingly volatile, and while most assets in the cryptocurrency market experienced slight declines, Bitcoin remained relatively resilient, with only minor losses.
• At the time of writing, the cryptocurrency industry’s market capitalization stood at $1.074 trillion, with a total market cap decrease of 1.56% in the last 24 hours.
• As highlighted by experts in the field, “the conflict has not had a significant impact on crypto yet, but further escalation could lead to increased price sensitivity.”

The increasing tension between Israel and Hamas puts assets such as Bitcoin under pressure: Despite these, BTC is still resilient.

Possible Crypto Effects of the Israel-Hamas Conflict

The long-standing conflict in the Middle East has taken an extraordinary turn as events between Israel and Hamas intensify. While most assets in the cryptocurrency market saw slight declines, Bitcoin (BTC) remained relatively robust, recording only minor losses.

The crypto sector, like other financial markets, has not managed to remain unaffected by recent developments in the Middle East. However, the impact so far has been relatively mild compared to some others (such as gold), according to data from October 10.

At the time of writing, the cryptocurrency industry’s market capitalization stood at $1.074 trillion, with a total market cap decrease of 1.56% in the last 24 hours, which also represents a 1.47% decline in the past seven days.

Meanwhile, discussions in the crypto space shifted from routine price debates to discussions related to Israel and Palestine, as revealed in findings shared by the blockchain and behavior analytics platform Santiment on October 9.

As noted by experts from the platform, “the conflict has not had a significant impact on crypto yet, but further escalation could lead to increased price sensitivity.” The extent of such impact is becoming clearer as conflicts in the Middle East continue to spread and persist.

What’s the Current Bitcoin Price?

Meanwhile, Bitcoin is currently trading at a price of $27,660, registering a 0.28% increase in the last 24 hours. It has also recorded a 0.56% gain in the previous seven days and a 7.19% gain on its monthly chart.

Indeed, global events have shown their effects on the cryptocurrency market on previous occasions, as seen in the significant sell-off and over half a billion dollars in losses following Russia’s invasion of Ukraine in February 2022, which serves as one example.