Bitcoin Plunges Below $100K: Is It Time to Buy the Dip? - Zacks Investment Research
The cryptocurrency market experienced a significant decline this weekend as geopolitical tensions between the United States and Iran escalated. As of 12:05 P.M. in New York on June 22, Bitcoin fell as much as 3.8% to $98,904, while Ether plunged up to 10% to approximately $2,157 – its lowest intraday price since May 8.
The sudden escalation in tensions between the two countries, with U.S. bombers targeting Iran's key nuclear facilities, sent a wave of risk-off sentiment through the cryptocurrency markets. Investors are nervously eyeing ongoing geopolitical developments, with traders closely watching oil markets when traditional exchanges reopen.
Despite the turbulence, some experts remain cautiously optimistic. Cosmo Jiang, general partner at Pantera Capital Management, believes that Bitcoin tends to lead the market out of a bounce during times of geopolitical uncertainty, hinting at a potential rebound once tensions stabilize.
In addition to its impact on the cryptocurrency market, Bitcoin's relevance in the AI infrastructure is growing. As artificial intelligence reshapes the digital economy, high-performance computing has become essential to meeting the surging demand for computational power. Bitfarms, a Bitcoin mining company, is positioning itself at the intersection of AI and energy infrastructure, uniquely positioned to meet the demand for both physical infrastructure and energy-intensive computing.
In light of these developments, exchange-traded funds (ETFs) such as iShares Bitcoin Trust ETF (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT) are in the spotlight.
Investors should be aware of the potential impact of geopolitical tensions on the cryptocurrency market and consider the potential rebound once tensions stabilize. In the meantime, Bitcoin's role in AI infrastructure continues to grow, providing an additional layer of relevance for the digital asset.
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This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
