Bitcoin Sheds Over $3K Amid Escalating Tensions In The Middle East

Bitcoin performed well in September and is also expected to post significant gains this month. However, on the first day of October, the world's top digital currency retreated, hit by geopolitical headwinds.

Bitcoin was trading just below $64,000 on Tuesday when news spread about rising tensions in the Middle East. Within hours, the leading digital asset plummeted to $60,000.

Data from CoinGecko shows that the digital coin has gradually recovered and is now trading in the $61,000 highs as of early Wednesday.

Bitcoin Retreats after Iran Fires Hundreds Of Missiles At Israel

Bitcoin has reacted to the war in Gaza last year, and on Tuesday, it also reacted to the news that Iran fired hundreds of missiles toward Israel.

Israel's air raid sirens sounded across the country as Iran fired an estimated 400 missiles. Explosions were heard across the skies of Tel Aviv and Jerusalem as Israel's Iron Dome worked to defend the country. Initial reports revealed that three people were injured from the missile barrage. It wasn't immediately clear which specific areas were hard-hit.

For days before Iran's missile barrage toward Israel, tensions between Israel and Lebanon-based militant group Hezbollah had been escalating too. Israel struck Beirut, seemingly prompting investors to dump volatile assets, including Bitcoin.

From rallying last week and posting a three-week spike, BTC prices have been down by over 3% in the last 24 hours.

Trump Memecoins Affected Too?

It appears Bitcoin isn't the only cryptocurrency struggling with news of heightening tensions in the Middle East as PolitiFi (political finance) memecoins based on Republican presidential candidate Donald Trump also plunged overnight.

MAGA Again (MAGAA) is down by more than 6% in the last 24 hours, Dark MAGA (DMAGA) shed nearly 12%, Pepe Trump (PTRUMP) bled 38%, and MAGA VP (MVP) decreased by nearly 20%.

Other Top Coins Get Dragged into the Mess

Tuesday night's geopolitical mess also hit other overall top digital currencies, including Ethereum (ETH), which retreated by nearly 6%. Cardano (ADA) saw losses of over 6% and Dogecoin (DOGE) bled some 8% in the past day.

This is not the first time Bitcoin and the broader crypto market has reacted to political conflict. In June, in the heat of Israel's war against Hamas, crypto observers noted how BTC seemed to be "much more sensitive to fear than gold."

It remains to be seen whether BTC prices and other crypto tokens will recover soon. Pressure is on Bitcoin as it is expected to perform well this month, drawing from its historically positive runs during "Uptober."