#IsraelIranConflict

Geopolitical tensions and military conflicts, such as the war between Israel and Iran, lead to immediate negative effects on the cryptocurrency market for the following reasons:

Increased uncertainty and risk: Cryptocurrencies are inherently high-risk assets. During times of geopolitical crises, investors tend to pull their capital from risky assets and seek 'safe havens' such as gold or U.S. Treasury bonds, resulting in a decline in cryptocurrency prices.

Liquidation of leveraged positions: Sharp fluctuations caused by negative news often lead to the liquidation of large amounts of leveraged positions (positions that rely on borrowing) in the cryptocurrency market. This forced liquidation increases selling pressure and accelerates the pace of declines. The market has witnessed billions of dollars in liquidations during recent escalation periods.

Decline in investor sentiment (FUD): Fear, uncertainty, and doubt (FUD) spread quickly in digital communities, prompting investors to sell out of panic, leading to further price declines.