Israel's airstrike on Iran: Why is the crypto world caught in a 'panic of plummeting prices' again?

At 8 AM, a shocking piece of news broke the silence worldwide: Israel launched an airstrike on Iran. As soon as the news broke, the financial markets surged, especially in the crypto sector, where investors' nerves were tightly strung. Ethereum, the leading digital currency, seemed to touch a high of $2800 at that moment, which then triggered an uproar in the market—Is this a signal of a peak? Is the crypto world about to face a new round of massive declines?

In the face of such an unexpected event, many people's first reaction may be panic. After all, military conflicts have always been seen as 'black swans' in the financial market, with the uncertainty they bring often enough to cause asset prices to fluctuate instantly. However, when we calm down and carefully examine history and reality, we may find that things are not so simple.

Looking back over the past few years, the conflict between Russia and Ukraine has lasted quite a long time. Although there were indeed short-term severe fluctuations in the market at the beginning of the conflict, over time, investors gradually learned how to find balance amid this uncertainty. Similarly, the friction between Israel and Iran is not a new phenomenon. Although these conflicts often tug at the nerves of the world, in the long river of the financial market, they seem no longer to be 'bombshells' capable of triggering widespread turmoil.

So, why can the news of Israel's airstrike on Iran still provoke a huge uproar in the crypto world? This may be intricately linked to the current market background and trends. In a bear market environment, any negative news can become the last straw that breaks the camel's back, triggering a complete market collapse. However, under the current bullish market context, the situation is different. Although news of conflict can still trigger short-term market fluctuations, major funds often use this news to manipulate market trends, creating a specific market atmosphere.

In such a market atmosphere, many investors are bound by a kind of inertia. They firmly believe that once prices rise, a significant drop is inevitable. This obsession is particularly common in the crypto world, to the extent that many people, upon seeing slight price fluctuations, eagerly want to 'short' for profit.