The ongoing controversy between Iran and Israel has significantly impacted the crypto market, causing volatility and uncertainty among investors. Here's a breakdown of the effects:

*Market Reaction*

- *Bitcoin Price Drop*: Bitcoin's value plummeted to around $103,000 after Israel launched airstrikes on Iran, with some analysts predicting further declines.

- *Liquidations*: Over $1 billion worth of long positions across all cryptocurrencies were liquidated in 24 hours, with $427.84 million in Bitcoin long positions alone.

- *Market Capitalization*: The total crypto market capitalization dropped 7% to $3.3 trillion ¹ ².

*Investor Sentiment*

- *Risk-Off Sentiment*: Investors moved to safe-haven assets like gold, which rose 0.75% to $3,428 per ounce, amid growing geopolitical tensions.

- *Uncertainty*: The Crypto Fear & Greed Index remained in the "Greed" zone but dropped 10 points to 61, reflecting investor uncertainty ¹ ³.

*Potential Outcomes*

- *Volatility*: Analysts predict continued volatility in the crypto market, with some expecting a potential rebound in Bitcoin's price due to its historical resilience.

- *Bullish Fractal*: Some analysts spot a bullish fractal similar to one that preceded an 80% rally in late 2024, hinting at a potential breakout toward new highs.

- *Long-Term Prospects*: Despite short-term uncertainty, some experts believe Bitcoin's underlying fundamentals remain strong, with predictions of a potential rally to $150,000 or more in 2025 ⁴.