The escalation of the Middle East situation has led to a decline in Bitcoin prices

Recently, the tension in the Middle East has escalated again, as one country conducted airstrikes on the military facilities of another country, an event that has caused ripples in the global financial markets. As a result, risk assets faced sell-offs, and the price of Bitcoin also fell.

In the early morning of Friday, the Bitcoin price fell about 5% from the 24-hour high of $108,500, hitting $102,900. This trend is consistent with other risk assets and reflects investors' concerns about geopolitical risks.

According to reports, the aim of this military operation is to target military facilities near the capital of a certain country and other important cities. The country launching the airstrikes claims this is a "preemptive" action intended to address the "escalating threat." The country's leader stated that this operation may last for several days until the threat is eliminated.

The attacked country has not yet made a formal response to the incident, but local media reports that an explosion occurred in the affected area, leading to interruptions in air traffic. Meanwhile, U.S. officials have stated that they are closely monitoring the situation.

Professionals in the cryptocurrency industry have shared their views on the impact of this event. A fund manager pointed out that such geopolitical conflicts are not uncommon in their shock to risk assets, often leading to short-term volatility but may also create buying opportunities. Another analyst believes that although Bitcoin is still viewed as a risk asset in the short term, in the long run, the allocation by institutional investors is gradually dominating its trend.

In contrast to the cryptocurrency market, the price of gold, as a traditional safe-haven asset, has risen. Spot gold once climbed to $3,429, reflecting investors' demand for safe assets during uncertain times.

In addition, influenced by the heightened risk of regional conflicts, U.S. stock index futures and oil futures prices have also declined. This indicates that investors are weighing the potential impact of broader geopolitical risks on the global economy.

As the situation continues to evolve, market participants will closely monitor the developments and their impact on the prices of various assets. In this complex international environment, investors need to remain vigilant, carefully assess risks, and adjust their investment strategies in a timely manner.