Global markets opened the week in shock after the United States and Israel carried out the most aggressive strike on Iran in decades, killing Iranian Supreme Leader Ayatollah Ali Khamenei. The increasing geopolitical tensions caused a decline in crypto prices, while safe-haven assets and oil prices experienced significant increases.
How Crypto Prices React to Ayatollah Ali Khamenei’s Death?
Despite experiencing a sharp rebound on Sunday, crypto prices failed to maintain gains as broader risk sentiment deteriorated. BTC price briefly climbed back to the $68k level after Iranian state media reported that Ayatollah Ali Khamenei had been killed in U.S. and Israeli airstrikes.
Initially, the crypto community saw this as a sign that tensions might ease. With a temporary council stepping in until a new leader is chosen, some investors hoped the situation could calm down, pushing the crypto prices higher.
But the optimism didn’t last long. BTC, ETH, and XRP prices slipped again as the geopolitical tensions rose. President Donald Trump announced that the US would continue its airstrikes until its mission is completed.
Following this comment, the crypto prices once again slipped into the red zone, erasing the recent short-term gains. The Bitcoin price, after surging past $68k, plummeted to $66,249, down by 1% in a day. Despite a 1.5% weekly surge, the BTC price has seen a 20% decline over the past month.
At the same time, ETH and XRP prices have also seen significant falls over the past day. Although the Ethereum price jumped above $2k yesterday, it dropped to the current $1,947, down by 2.46%. The XRP price, currently at $1.35, declined from $1.4, with a daily loss of nearly 3%.
Oil Prices and Safe Havens Rise; Here’s Why
Meanwhile, oil prices and traditional safe-haven assets surged as investors reacted to the growing uncertainty in the Middle East. According to a Bloomberg report, oil prices recorded their biggest hike in four years, reflecting fears that the conflict could disrupt energy supplies. In the meantime, major stock indexes, including Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index, moved lower.
Orbit Markets’ Caroline Mauron stated,
Following Khamenei’s death, experts projected the rise of oil prices. The surge is one of the major drivers of the current crypto market crash.
Also, Iran has rejected reports claiming attempts to restart nuclear negotiations with the United States. Amid the escalating tensions, investors moved funds to safe-haven assets like gold. This has pushed the gold value even higher as crypto prices tumbled. Gold price hit 5,382.87, marking a notable high of 2.02% in 24 hours. Silver reached $95, with about 1.5% surge.
Source: https://coingape.com/how-btc-eth-and-xrp-prices-react-as-crude-oil-and-safe-havens-surge-after-khameneis-death/
