Why Ethereum Classic Is Falling

Ethereum Classic ETC/USD is trading lower by 6.2% to $18.50 during Tuesday’s session amid overall market weakness. Iran earlier launched a missile strike against Israel, following the assassination of Hezbollah leader Hassan Nasrallah.

The attack, which saw between 100 to 200 missiles fired, marked a new escalation in regional tensions, with fears mounting over a broader conflict. In response, the United States bolstered its military presence, signaling the potential for further retaliatory action.

The sudden rise in conflict and uncertainty has rattled global markets, driving up safe-haven assets like gold and oil, while riskier assets such as cryptocurrencies took a hit.

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What To Know: Cryptocurrencies, including Ethereum Classic, often see heightened volatility during periods of geopolitical unrest. As a smaller and more niche asset compared to Bitcoin or Ethereum, Ethereum Classic tends to be more vulnerable to sharp price movements during uncertain times.

The growing conflict between Iran and Israel, with the involvement of the United States, has triggered widespread market anxiety. Investors, concerned about the potential impact on the global economy and energy markets, are fleeing riskier assets like ETC in favor of traditional safe-havens.

What Else: While Ethereum Classic has its own dedicated user base and unique blockchain infrastructure, it remains highly correlated with the broader cryptocurrency market. As political instability drives fear across global markets, investors are pulling back from cryptocurrencies as a whole.

Additionally, regulatory uncertainty around cryptocurrencies in regions like the U.S. and Europe, combined with the instability in the Middle East, is causing further trepidation among investors.

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