Probably weak hands due to the Iran attack on Israel yesterday. Obviously it’s really bad that it happened but I can never understand why people sell because of events like this. Often I think it’s whales using bad news to short & push prices down in at attempt to scare weak hands into selling so they can dump the price to pick up cheap coins.
I am also always surprised that war like this is causing bitcoin to decrease in price. I can remember the last time Iran attacked Israel, the market also was not good at all before the market later become good. Also this time the same thing. Also I can remember the time when Russian invaded Ukraine, something like this also happened. But what I noticed about the time like this is that the market will later become good not long after the bad event.Not only Bitcoin, the entire stock market was also in red after the news of war spread. This is understandable because bitcoin and stocks are both highly speculative assets, so people often decide to sell when there is negative news. This will always happen and is nothing new as they are ready to cut their losses and find safe havens to protect their assets in the long term. That is also the reason why gold always increases when war breaks out.
The market usually recovers afterwards because it adapts gradually, similar to what happened in the war between Russia and Ukraine which no longer has much impact on the market these days.
Source: CNBC
