Bitcoin slips as tensions in Middle East escalate

Last Friday, a sharp drop in bitcoin (BTC) was recorded, whose value fell in the afternoon below $66,000.

A few hours earlier, the rate reached $71,000. Together with bitcoin, other cryptocurrencies fell in price, according to 3Dnews.

The cryptocurrency market collapse came along with a drop in stock markets amid growing fears of widening conflict in the Middle East.

Ethereum (ETH), the second largest cryptocurrency by market capitalization, fell 12% to $3100 before rebounding slightly to end up down 8%. Other cryptocurrencies saw an even bigger drop due to panic in the market. The CoinDesk 20 Index (CD20) was down nearly 10%, with ADA Cardano, AVAX Avalanche, bitcoin Cash (BCH), filecoin (FIL) and aptos (APT) falling 15-20%.

At the same time, Treasuries and the U.S. dollar index (DXY) rose in value in the stock market as traders rushed to hedge, while the key U.S. stock indexes S&P500 and Nasdaq 100 fell 1.7 per cent in the hour before the close of the trading session. Gold, long considered a safe haven asset, jumped above $2400 to a new all-time high, then fell back to its previous value, while oil rose 1%.

Digital asset investment firm Ryze Labs said Friday that it expects some "short-term market weakness" in crypto assets due to the upcoming tax season.