Crypto Market Remains Bullish Amid Geopolitical Tensions
Crypto Market Sentiment Holds Steady Amidst Geopolitical Uncertainty
The Crypto Fear & Greed Index, a key indicator of overall market sentiment, remained in the "greed" zone despite heightened geopolitical tensions following Israel's airstrikes on Iran. On Sunday, the index registered a score of 60, showcasing investor confidence even as Bitcoin (BTC) experienced a 2.8% dip to $103,000 on Friday.
This price movement occurred after reported explosions in Tehran on Thursday, which Israel claimed responsibility for. Iran reportedly retaliated with ballistic missile strikes on Friday night. Thursday's index score was even higher, at 71.
Bitcoin's Resilience Near All-Time Highs
Bitcoin's price decline occurred as it neared its May 22 all-time high of $111,970. At the time of writing, Bitcoin is trading around $105,670 (according to CoinMarketCap). This relative resilience in the face of geopolitical risks has been noted by analysts.
Ethereum (ETH) saw a more significant drop, falling 10.79% to a low of $2,454 before recovering to approximately $2,534. However, several crypto analysts highlighted Bitcoin's strength as noteworthy.
Crypto analyst Za commented on X, stating, "Bitcoin does not seem concerned about the Israel and Iran conflict (yet)." Another analyst, Anthony Pompliano, described Bitcoin as "relentless."
Traders appear confident Bitcoin will remain above the crucial $100,000 mark. According to CoinGlass data, a fall below this level could trigger liquidations of over $1.74 billion in long positions.
Spot Bitcoin ETFs showed consistent inflows for the week ending Friday, accumulating $1.37 billion (Source: Farside data). In contrast, spot Ether ETFs experienced net outflows of $2.1 million, ending a 19-day inflow streak.
Bitcoin's Response Compared to Previous Geopolitical Events
Bitcoin's price reaction to the recent airstrikes was less dramatic compared to April 2024, when an Iranian attack on Israel led to an 8.4% drop in BTC's price. While the Fear & Greed Index showed "Greed" (72) on that day, it fell to "Fear" (43) by May 2, 2024.
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