Investors are facing substantial losses as Bitcoin and Ethereum plummet due to fears of a potential large-scale attack by Iran on Israel. Bitcoin has dropped 22 percent over the past week, with a 13 percent decline occurring just today, bringing its price to around $53,100. Ethereum has also seen a significant decrease, down 31 percent in the last seven days and 20 percent since Sunday, trading at $2,337.
In the past 24 hours, Bitcoin traders have liquidated over $620 million, and further sell-offs are expected as bearish trends continue. The market turmoil is driven by concerns over the US elections, a potential recession, and escalating geopolitical tensions in the Middle East. Analysts suggest that if geopolitical crises worsen, cryptocurrencies could face severe impacts, similar to the disruptions seen in March 2020.
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Amidst the global uncertainty, Israeli social media has been abuzz with reports of a new underground bunker in Jerusalem designed to protect key officials from potential attacks by Iran and Hezbollah. Meanwhile, Japan’s Nikkei 225 has experienced its worst crash in decades, surpassing the infamous Black Monday of 1987. The US Federal Reserve is contemplating a half-point rate cut to stabilize the market.
In the financial realm, Warren Buffett’s Berkshire Hathaway has sold $75.5 billion in stocks and significantly reduced its stake in Apple, holding a substantial cash reserve of $276.9 billion. This move reflects a cautious approach amidst market volatility. The overall sentiment is mixed, with some dismissing the current developments as inconsequential, while others fear the possibility of severe global repercussions, including a major war or economic downturn.
