#IsraelIranConflict ⚔️ Israel - Iran Conflict: Impact on Crypto (April 2024 Context)

📉 Immediate Market Reaction:

• Bitcoin (BTC): drop of about 4 to 5% within a few hours.

• Ethereum (ETH): similar trend, rapid decline around 4.5%.

• Altcoins: generally more volatile, some have dropped up to 10%.

📊 Why this reaction?

1. Flight to safety:

• In times of geopolitical conflict, investors flee risky assets (like crypto) in favor of gold, the US dollar, or bonds.

2. Extreme uncertainty:

• A military escalation in the Middle East raises fears of global economic instability, prompting markets to react sharply.

3. Impact on global markets:

• Stock markets (S&P 500, Nasdaq, DAX…) have also corrected.

• Crypto is highly correlated with these markets during periods of panic.

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🔁 Short-term result:

• Extreme volatility in crypto markets.

• Major support levels like 25,000 $ for BTC and 2,400 $ for ETH have been tested (even temporarily broken).

• Increase in selling volume and short Open Interest on derivatives.

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🔮 Medium-term:

• Cryptos are often resilient: once the initial fear passes, they rebound.

• In April 2024, BTC and ETH recovered their losses a few days later after tensions stabilized.

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✅ Key takeaway:

Geopolitical tensions like Israel vs Iran often trigger a “flash crash” in cryptos, followed by quick stabilization if the escalation does not last.