The situation surrounding Israel and Iran has generated a significant drop in the cryptocurrency market, due to the uncertainty created by geopolitical conflicts, which also leads to greater volatility in cryptocurrency prices.
What could happen in the coming days?
This depends, and there are several events that could occur:
1. Retaliatory attack by Iran: The Iranian government could initiate a retaliatory attack against Israel, using drones and ballistic missiles, or threaten the global oil flow through the Strait of Hormuz, which would directly affect oil and energy prices and further exacerbate the drop in cryptocurrencies.
2. De-escalation: Iran has once again demonstrated that it is very vulnerable to Israel, however, they cannot remain passive; Iran could carry out a retaliatory attack but on a smaller scale, remaining a threat but with a lower intensity conflict. This would help quickly recover losses as many would take the opportunity to buy at a lower price.
In my personal opinion, it is likely that we will see a retaliatory attack by Iran, but there will not be an escalation, similar to previous confrontations where there was an exchange of attacks but no escalation leading to open war, which will eventually lead to markets recovering, but for now, markets continue to react to this conflict.
