U.S. strikes on Iranian nuclear facilities triggered a sell-off in the cryptocurrency market, wrote Bloomberg. Ethereum, the second most capitalized cryptocurrency after bitcoin, showed the sharpest decline. Investors expect traditional markets to open after the weekend, predicting oil prices will rise.

Details

- Ethereum was down 7.7% to around $2200 at the moment, its lowest level since May 9.

- Bitcoin's value briefly dipped below $101,000, but then recovered the losses. 

What's in store for Wall Street

Cryptocurrency has been the first asset class to react to the U.S. attack on Iran, as traditional stock and commodity markets are closed for now. Trading in oil futures and U.S. stocks will begin at 6 p.m. ET in the United States.

«Markets are anxiously watching the ongoing geopolitical events,» Caroline Moron, co-founder of Orbit Markets, a liquidity provider for cryptocurrencies, told Bloomberg. The next key levels to watch for crypto traders over the weekend are $100,000 for bitcoin and $2,000 for ethereum, she said. When traditional markets open, special attention will be paid to the value of oil, she noted. 

«A lot will depend on how Iran responds in the coming hours and days, but it could put us on the path to $100 oil if Iran responds the way it has threatened to earlier,» said MST Marquee senior energy analyst Saul Kavonick to Reuters. - The information war that appears to have been aimed at taking Iran by surprise has to some extent taken oil markets by surprise as well.»

What happened

The U.S. joined Israel's attacks on Iran on the night of June 22. U.S. bombers struck Iranian facilities in Fordow, Natanz and Isfahan, which are key to Iran's nuclear program. US President Donald Trump said the sites had been «destroyed» and threatened more strikes if Iran did not make peace. Tehran in turn said it was «reserving all options» to retaliate. On Sunday morning, it shelled Israel.

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