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After reaching a nearly one-month peak of $74,000, bitcoin fell back to just above $71,000 as reports of U.S. military activity in the Middle East unsettled risk assets.
Bitcoin (BTC) price on March 13 (CoinDesk)
What to know:
- New reports regarding intensifying military engagement in the Middle East halted bitcoin’s rise to $74,000.
- The S&P 500 and Nasdaq indexes similarly shifted from early morning gains to losses, while oil increased by over $4 per barrel from its daily lows.
The cryptocurrency rally faced a setback on Friday as new reports of potential escalation in the Iran conflict abruptly dampened risk appetite across markets.
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Among the updates, the U.S. Central Command confirmed the fatalities of all six crew members aboard a refueling aircraft that crashed in Iraq on Thursday.
Additionally, the Wall Street Journal indicated that the Pentagon is sending a Marine expeditionary unit (believed to involve 2,500 troops) to the Middle East, including forces linked to the USS Tripoli, as Iran intensifies its attacks near the Strait of Hormuz.
Bitcoin, which had surged to nearly $74,000 earlier in the session, quickly dropped to $71,200 following the news, but still maintained a 1.9% increase over the preceding 24 hours. Ethereum’s ether (ETH), Solana’s SOL (SOL), and also saw a 3% rise during the same timeframe, although they too receded from their session peaks.
U.S. equities gave up early gains, with the S&P 500 and Nasdaq shifting to declines of 0.4%-0.5%. Gold, which typically gains during geopolitical unrest, continued its recent decline with an additional 1% drop, while oil rose more than $5 per barrel from its daily lows, now up nearly 2% for the session at $97.30.
"Optimism regarding geopolitical matters, including the easing of Russian sanctions, has influenced the price movements," noted Paul Howard, director at trading firm Wincent. "These developments usually have a brief impact, so [we] would anticipate this being short-lived until we observe concrete follow-up actions."
Crypto-related equities are mostly showing gains for the day. Bitcoin miner Marathon Digital (MARA) led the charge with a 10% increase, while Galaxy Digital (GLXY), Ethereum treasury firm Bitmine (BMNR), and AI data-center focused miner Cipher Mining (CIFR) all rose by 5%-7%.
