Cryptocurrencies, including Bitcoin, recover somewhat but stay depressed following Iran's assault on Israel

Cryptocurrencies swiftly regained ground on Sunday, swiftly rebounding from a recent selloff triggered by Iran’s missile and drone attack on Israel.

Bitcoin (BTCUSD), which experienced a 7% dip to just over $61,000 on Saturday, held steady at $64,771, although it remained below the levels surpassing $71,000 seen on Friday. Similarly, Ethereum (ETHUSD) showed resilience, rising 1.6% to $2,960, albeit still below the $3,500 mark observed on Friday.

The sharp reaction on Saturday underscored cryptocurrencies' role as a barometer of market sentiment, especially when traditional instruments were unavailable for trading. According to CoinMarketCap, the global crypto market experienced a 9% decline on Saturday following news of Iran’s attack.

In a noteworthy post on X, Balaji Srinivasan, Former Chief Technology Officer of Coinbase and co-founder of Earn.com, emphasized how financial markets might be finding solace in indications that Iran’s actions could be short-lived.