Bitcoin Tumbles, Oil Surges As Israel Vows Revenge For Iran Missile Attack, Dampening Uptober Optimism

Updated: 02 October 2024

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Bitcoin slumped and oil prices surged as Israel vowed to make Iran pay for a missile attack, dampening Uptober optimism amid escalating hostilities in the Middle East.

BTC tumbled more than 3% in the past 24 hours to trade at $61,672.54 as of 2:40 a.m. EST as the overall crypto market plunged 4.2% to a market capitalization of $2.17 trillion, according to CoinMarketCap.

Israeli Prime Minister Says Iran “Will Pay” For Missile Attack

Iran fired about 200 ballistic missiles at Israel yesterday at around 7:30 p.m. local time, just hours after the US warned of an impending attack. Many of the missiles were intercepted, according to Israel’s Defense Forces.

“Iran made a big mistake tonight, and it will pay for it,” said Prime Minister Benjamin Netanyahu during a meeting with his security cabinet. In the following hours, the Israeli Defense Forces launched a counter strike against Hezbollah targets in Lebanon.

The price of oil surged over 5% amid concerns over supply disruptions. Gold prices also rose 1.4% yesterday to reach $2,665 per ounce as investors retreated to the financial safe haven amid escalating tensions in the Middle East. The price of Gold has since undergone a slight correction to stand at $2,648.76.

Uptober Optimism Takes A Hit

October has historically been a bullish month for the crypto market. Favorable macroeconomic conditions and the positive September close by Bitcoin this year had elevated market optimism, with several analysts forecasting that cryptos would perform well in the final months of the year.

Crypto Fear & Greed Index Now : 42 (Fear)#btc #bitcoin #crypto pic.twitter.com/X03DF4hSE5

— Crypto Candy🔥💎 (@cryptocandy24x) October 2, 2024

Over the past 24 hours, however, bulls took a knock. In addition to BTC’s 3% fall, altcoin leader Ethereum (ETH) saw its price plunge over 6%, while the rest of the top 10 cryptos all suffered losses.