Bitcoin and Cryptocurrencies Decline Amid Middle East Tensions

Cryptocurrency markets witnessed a significant decline, with the value of Bitcoin dropping below $103,000, influenced by investors avoiding high-risk assets amidst escalating geopolitical tensions between Iran and Israel.

This decline came after the digital currency had recovered on Friday, June 20, surpassing $106,500, despite prevailing concerns in global markets.

The losses were not limited to Bitcoin, but also affected other digital currencies such as Ethereum, which declined by 0.85% to $2,392.56, and Solana, which dropped by about 0.96% to $137.90.

In a related context, the Norwegian government announced its intention to impose a temporary ban on establishing new data centers dedicated to cryptocurrency mining, especially those relying on high-energy-consuming technologies. This decision aims to redirect electrical resources towards other priority industries.

Reuters quoted the Minister of Digitalization and Public Administration, Karin Tong, as saying: "The Labor Party government has a clear intention to limit cryptocurrency mining in Norway as much as possible," adding: "Cryptocurrency mining requires a lot of energy and generates little employment and income for the local community." This ban is expected to be imposed temporarily starting in the fall of 2025.

Cryptocurrency mining is one of the most energy-consuming activities, putting significant pressure on local power grids. Estimates indicate that a single cryptocurrency transaction consumes more energy than six American households in a full day.

According to available data, the global annual energy consumption for cryptocurrency mining exceeds 68 terawatt-hours, equivalent to operating more than 19 coal-fired power plants continuously. This figure is expected to rise to 100 terawatt-hours annually, according to the EPA's Emissions Star program, due to the complex technical nature of blockchain technology.