Trading at $27,500, Bitcoin starts the second week of October down 1.4%, following the decline in US stocks following the start of the war between Israel and Hamas. In the first days, the conflict has already resulted in the deaths of more than 1,300 people.
In February, Bitcoin fell 3% on the first day of the war between Russia and Ukraine. The losses lasted for two weeks, reaching an 18% devaluation before the asset recovered.
Other cryptocurrencies are also following Bitcoin’s move this Monday (9). Ethereum, the market’s second largest, is down 2.5%. Ripple (XRP), Solana (SOL) and Dogecoin (DOGE) are performing even worse, with declines of 3.9%, 4.4% and 3.7% respectively.
Stocks and cryptocurrencies fall, oil and gold rise
While stocks and cryptocurrencies are trading lower, oil and gold are bucking the trend. Gold is considered a protective asset and is trading at US$1,852, showing an increase of 1.79% from Friday’s price (6).
Light crude started the week up 4.8% due to the conflict between Israel and Hamas, which could increase the price of other products around the world.
US indices reflect this market concern. The S&P500, which brings together the 500 largest companies in the US, starts the week with a loss of 0.25%. The Dow Jones Industrial Index (DJI) is down 0.14%, as is the Nasdaq Composite down 0.58%.
Analyst predicts a volatile week for Bitcoin, but believes in an upward trend
Michaël van de Poppe, a famous market analyst, is confident that Bitcoin can benefit from armed conflict and reach a new monthly high after a brief moment of stress. In any case, he was against the war in Israel.
“Market outlook, it will be a volatile week”wrote van de Poppe. “My view is that Bitcoin will continue to rise and possibly reach $30,000 as global uncertainty increases. Stop the War.”
I had a great business trip to Dubai.
I can’t wait to share news!
Now; From a market perspective, it will be a volatile week. My idea is that #Bitcoin continues uptrend and may reach $30,000 as global uncertainty increases.
Stop the War.
— Michaël van de Poppe (@CryptoMichNL) October 7, 2023
Finally, it is still too early to understand what the consequences will be for Bitcoin in relation to yet another war. Despite being called “digital gold,” the cryptocurrency is currently following the stock market’s decline and performing opposite to that of the metal.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
