Crypto markets slumped 2% on November 4, 2023, following a Hamas attack on Israel. The broad CoinDesk Market Index (CMI) was lower by 2%. Ether (ETH) suffered a 2.5% decline, while Bitcoin (BTC) dropped 1.7%. Losses were larger among other altcoins, with Ripple Labs-adjacent token (XRP), solana (SOL), Polygon's native token (MATIC), Avalanche's (AVAX), and popular meme token dogecoin (DOGE) all lower by 4%-5% over the past 24 hours.

Bitcoin price chart showing a 2% drop on November 4, 2023Opens in a new window

ailtra.ai

The Hamas attack on Israel, which killed two Israeli soldiers, was the latest escalation in violence between the two sides. The attack came at a time when the crypto market was already under pressure from rising interest rates and other macroeconomic factors.

Analysts said that the Hamas attack was just one of the factors that contributed to the sell-off in crypto markets on November 4. Other factors included rising oil prices, concerns about a potential recession, and the ongoing war in Ukraine.

Despite the recent sell-off, some analysts remain bullish on crypto in the long term. They argue that crypto is still a relatively new asset class with a lot of growth potential. They also point to the fact that crypto is becoming increasingly institutionalized, with more and more large investors entering the market.

It remains to be seen how the crypto market will perform in the coming weeks and months. However, the recent sell-off is a reminder that the crypto market is still volatile and that investors should be prepared for price swings.