Tensions in the Middle East over the weekend not only shook the international political scene, but also shook the crypto market.
Reports of a joint military strike by the United States and Israel on Iran triggered a swift reaction among investors.
In a short period of time, the price of major digital assets fell sharply as panic began to grip the market.
Bitcoin was among the most affected as its value dropped thousands of dollars in less than an hour and approached the $63,000 mark.
The decline also caused many trading positions to be liquidated, especially among traders who expected the price to continue to rise.
High selling activity on exchanges such as Binance and Coinbase added further pressure on the price during the turbulent market.
Ethereum was also not spared the impact of the situation, with the price of the second largest cryptocurrency falling by almost 10% in about an hour, thus erasing some of the gains recorded in the previous week.
Like Bitcoin, Ethereum saw many long positions liquidated as the price moved against traders' expectations.
Despite the sudden drop, recovery was swift.
Bitcoin has returned above $66,000 while Ethereum is nearing $2,000.
This move shows that interest in the crypto market is still there, but volatility remains high due to ongoing geopolitical uncertainty.
If tensions continue to escalate, pressure on high-risk markets like crypto could rise again.
However, if things calm down, investor sentiment could gradually recover.
