Cryptocurrencies fell heavily today with bitcoin falling below $60,000, in a flight from risky assets following reports of an Israeli missile attack on Iran. The news agency Fars said explosions were heard near the airport in the central city of Isfahan, but the reason was unknown. And so in the Asian session, Bitcoin slipped by more than 5.5% to $59,961, while the US dollar recorded a large rise. Ether fell by a similar margin, falling below the $3,000 barrier to $2,895.
Bitcoin has been subject to significant volatility as of late but has had a stellar run and is up 124% in the last year. The continuous purchases of ETFs were also supporting the ride, but the prospect of upcoming rate cuts by the Federal Reservewhich fuels investor interest in higher-yielding or more volatile assets.
If cryptocurrencies collapse, safe haven assets increase instead. Gold rose to a new all-time high of 2,411.09 per ounce. The strong demand, which has been ongoing since last February, is fueled both by its appeal as a safe haven in a context of geopolitical uncertainties and by investors seeking to diversify investments in an environment of lackluster performance by other asset classes. And it is certainly the one who contributes Fed which announced its intention to proceed with three interest rate cuts during the year, with the first cut scheduled for June, after leaving rates unchanged at the last meeting in March.
PHOTO: SHUTTERSTOCK
