The price of major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) fell over the weekend as the U.S. and Israel attacked Iran.
The price of Bitcoin, the world’s largest crypto, fell 4% on Feb. 28 immediately after the U.S. and Israel launched a coordinated attack on Iran.
In early trading on March 2, BTC was down 2% in 24 hours and trading below $66,000 U.S.
It was similar for Ethereum and XRP (XRP), with each cryptocurrency down more than 3% in the last 24 hours as war in the Middle East broke out.
The declines further challenge the narrative that cryptocurrencies are a safe haven asset and akin to “digital gold.”
More recently, Bitcoin and other cryptocurrencies have been trading as a risk asset and in tandem with technology stocks.
BTC has steadily fallen in recent months as investors move out of richly valued technology stocks and seek safety in value stocks and blue-chip companies such as Walmart (WMT).
Analysts say risk-off sentiment is likely to grow as conflict worsens in the Middle East and crude oil prices spike, causing further gyrations in crypto markets.
