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 before paring losses, according to data compiled by Bloomberg. Second-ranked token Ether had at one point shed about 7.6% of its value.
The selloff came after explosions were heard in Tehran, according to local media. Israeli Defense Minister Israel Katz said 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.”
