Bitcoin Volatility Under Pressure from Escalating Middle East Conflict
After a series of losses in the past two months, the leading cryptocurrency came under pressure on Monday, March 2, amid escalating violence in the Middle East, further demonstrating that investors do not trust it as a safe haven.
The digital currency traded relatively flat, hovering around $65,500 before the market opened.
However, Bitcoin later rebounded during the US session, rising to nearly $69,000, marking a gain of more than 5% for the day.
The cryptocurrency rally also included Ethereum, which rose 6.43% to $2,042.81.
Bitcoin's price has fallen by more than 20% over the past year. In contrast, gold has risen by nearly 89% during the same period.
On Saturday, the United States and Israel launched a series of military strikes against Iran, killing the Supreme Leader of the Islamic State, Ayatollah Ali Khamenei, prompting Iran to launch retaliatory attacks. Since then, the conflict has shown signs of deepening, leading to an exodus of investors from cryptocurrencies and stocks.
