Israel’s military announced on Saturday that it had conducted an airstrike killing Hezbollah leader Hassan Nasrallah, leading to heightened geopolitical tensions in global markets. The news caused Bitcoin to experience a minor dip of nearly 1% to $65.6K, potentially risking a further decline towards key support levels.
In defiance of criticism at the United Nations regarding Israel’s military actions in Gaza and Lebanon, Prime Minister Benjamin Netanyahu supported Israel’s operations against Hezbollah. Within a day of Netanyahu’s stance, the Israel Defense Forces (IDF) claimed responsibility for Nasrallah’s death in the Beirut airstrike.
IDF confirmed the killing of not only Nasrallah but also Ali Karki, the Commander of Hezbollah’s Southern Front, along with additional Hezbollah commanders. They emphasized continued operations against Hezbollah until Israeli civilians could safely return home.
Though stock markets were closed, Bitcoin prices showed a slight downward movement on Saturday. Despite expectations of bullishness in October, the prevailing geopolitical risks could affect market sentiment.
Reuters reported that Iran’s Supreme Leader Ayatollah Ali Khamenei had been relocated to a secure location following Israel’s announcement of Nasrallah’s demise.
Regarding Bitcoin’s price action, the market experienced a slight decline after Israel’s claim, but overall sentiment remained bullish. The Crypto Fear & Greed Index indicated an improvement in sentiment from 61 (greed) to 64 (greed) on that day.
In other market news, the PCE inflation data suggested a potential 50 bps rate cut by the US Federal Reserve, with increasing probabilities supporting further market optimism. Inflows into spot Bitcoin ETFs surpassed $1 billion for the week, with significant investments from BlackRock.
As Bitcoin faced geopolitical pressures, it was noted that a drop to $65,033, a 0.382 Fib retracement level, could occur. Currently, the cryptocurrency is finding support at the $65,500 level.
Bitcoin’s trading price stood at $65,752, with a daily range between $65,346 and $66,480. Trading volume saw a 33% decrease over the past day, indicating reduced trader interest.