The Bitcoin and crypto market is recovering after the conflict between Iran and Israel

Geopolitical tensions escalated dramatically over the weekend following an unprecedented conflict between Iran and Israel. Saturday evening's events temporarily shook global markets, including the crypto sector. However, at the time of reporting, there was a noticeable recovery in the crypto market.

The rapid recovery of crypto assets shows the market's resilience and ability to withstand unexpected global events.

Bitcoin still has strong support at $60,000

Fears of an escalation in tensions triggered a sharp decline in Bitcoin (BTC), the cryptocurrency with the largest market capitalization, which fell as low as $60,800 during the conflict. Additionally, BeInCrypto previously reported that approximately $962.40 million was lost during the market decline.

Crypto analyst Ash Crypto explained this downturn as a reaction to the expected consequences of the war, namely rising commodity prices such as oil and gold. These consequences lead to high inflation, making interest rate cuts by central banks less likely.

Read more: Bitcoin price prediction 2024/2025/2030

According to Ash Crypto, this situation creates a bearish environment for both stocks and crypto assets.

“As BTC and alts began to collapse, those with high-leverage positions open were liquidated, leading to more forced selling,” Ash Crypto noted, drawing parallels to similar sell-offs during the Covid-19 outbreak in 2020 and on Beginning of the Russia-Ukraine conflict.

However, Bitcoin and major altcoins have recovered significantly. At the time of writing, Bitcoin is trading at $65,170, up 2.66% in the last 24 hours. Ethereum (ETH) and Solana (SOL) saw even more significant recoveries, gaining 7% and 12.8%, respectively.

Bitcoin (BTC) price history. Source: BeInCrypto

In response to the impact of geopolitical tensions on the crypto market, Galaxy Digital CEO Mike Novogratz predicted a price recovery after an initial sell-off:

“Wars cost $$$…. We pray we don’t get an even bigger price, but after the deluge of risk, BTC will resume its uptrend,” Novogratz wrote on X (formerly Twitter).

Novogratz hoped that cooler heads could prevail and prevent a major regional conflict. This sentiment is crucial for sustained growth in the crypto space as markets prefer stability.

Read more: How to buy Bitcoin (BTC) and everything you need to know

Despite the volatility, Ash Crypto remains optimistic about Bitcoin's short-term performance.

“Currently, BTC is trading above $63,000 with strong support at $60,000. If the $60,000 level fails to hold, there is a strong support level at $56,000-$58,000, where most new whales (ETF buyers) have purchased their BTC,” explained Ash Crypto.

He also points to history and points out that “black swan” events often precede parabolic runs in the crypto market.

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