#IsraelIranConflict

Analysts cite two primary reasons behind the crypto downturn. First, investors tend to flock to cash and traditional safe havens during crises. Second, the possibility of global conflict raises concerns over increased regulatory pressures and the vulnerability of internet infrastructure both of which create uncertainty for digital assets.

Although there was a spike in buying activity in the stablecoin market, it wasn’t enough to offset the broader decline. Exchanges like Binance experienced sudden surges in traffic, with brief pricing anomalies seen in USDT pairs on some platforms.

It remains unclear how Iran will respond. Reports suggesting that the Revolutionary Guard and pro-Iranian militia forces are being mobilized point to a potential deepening of the crisis. This could threaten not only energy supplies but also global economic stability and the long-term resilience of crypto markets.