#IsraelIranConflict
The Israel-Iran conflict has created significant short-term volatility in crypto markets, with Bitcoin and other major coins experiencing sharp declines as investors react to heightened geopolitical risk. However, historical patterns indicate that such dips are often temporary, and the market could recover if tensions ease or macroeconomic conditions improve.
Immediate Impact on Crypto Markets
Bitcoin and the broader crypto market experienced a sharp decline following the escalation. Bitcoin dropped from $107,000 to as low as $103,000 before rebounding slightly1578.
Ethereum and Solana were down 7%, Dogecoin fell 6%, and the total crypto market cap dropped by about 3%157.
Over $1 billion in long crypto positions were liquidated as investors sought safer assets like U.S. Treasuries and the dollar57.
The sell-off mirrored a broader risk-off sentiment, with investors fleeing volatile assets amid geopolitical uncertainty
