Concerns Over Iran-Israel Clash... 0.45%↓ Compared to Jeonju [Bitcoin Now]

$67,000 Range Down 4.6% From Previous Day
Halving Hopes Remain Strong for Next Week

Local protesters in Tehran, Iran are holding a demonstration chanting anti-Israel slogans.
[Photo by Reuters Yonhap News]

The price of Bitcoin, which soared to the $72,000 range last week, has fallen below the $68,000 level. This is due to heightened geopolitical risks originating from the Middle East amid concerns over a possible direct conflict between Iran and Israel. It is observed that this has affected not only the stock market but also virtual assets. However, the upcoming Bitcoin halving event in April next week is seen as a factor supporting the price floor.

According to the global virtual asset market tracking site CoinMarketCap, as of 7:35 PM on the 13th (Korean time), the current Bitcoin price is $67,452.24, down 4.6% from the previous day. Compared to a week ago, it has retreated by 0.45%, while it has risen 123.1% compared to a year ago.

Bitcoin prices raised expectations by hitting the $72,000 range on the 8th. After retreating below the $68,000 level on the 11th, it surged back to the $70,000 range by the 12th. However, since the early hours of the 13th, it has plunged sharply and is currently below the $68,000 level.

The sharp drop in virtual asset prices on this day is believed to be mainly due to geopolitical risks originating from the Middle East. CoinDesk analyzed, "As risk-averse sentiment strengthened in traditional markets, the impact extended to digital assets, causing virtual asset prices to plummet."

The U.S. Wall Street Journal (WSJ) and others reported on the 11th (local time) that Israel is strengthening its readiness, anticipating that Iran will attack the country within 48 hours. Iran had previously pointed to Israel as behind the bombing of its consulate in Syria on the 1st and warned of retaliation.

The New York stock market closed down across the board. On the 12th, all three major New York stock indices fell more than 1%. The Dow Jones Industrial Average closed at 37,983.24, down 1.24% from the previous session. The S&P 500 index fell 1.46%, and the Nasdaq index dropped 1.62%. The price of gold, a safe-haven asset, showed strength. During the session, it reached a high of $2,448.8 per ounce, breaking the all-time record set just a day earlier. International oil prices also closed higher.

Concerns over inflation have also dampened expectations for a U.S. interest rate cut. With the U.S. Consumer Price Index (CPI) surging, the prevailing view is that the Federal Reserve's expected timing for lowering the benchmark interest rate will be delayed from June to September.

The virtual asset industry is focusing on the April halving event approaching next week. According to CoinMarketCap, there are 980 blocks remaining until the halving, with an expected block time of 9.62 minutes. Before the halving, Bitcoin miners were rewarded 50 coins per block. In the first halving in 2012, the mining reward per block decreased from 50 to 25 coins. After the second and third halvings, the block reward was reduced to 12.5 and 6.25 coins, respectively. In this fourth halving, the reward is expected to decrease to 3.125 coins. There is an expectation that scarcity will increase as the reward decreases.

According to the virtual asset data provider Alternative, the Fear & Greed Index, which indicates investor sentiment as of this day, stands at 72 points (Greed). Last week, it recorded 75 points (Greed). Alternative's Fear & Greed Index means that a score closer to 0 indicates extreme fear and pessimism about investing, while a score near 100 indicates optimism.