The Iran-Israel conflict has significantly impacted the crypto market, causing brief downturns and increased volatility. Here's how the market has reacted:
*Initial Reaction:*
- Bitcoin (BTC) dropped to $60,800, a 7.7% decline, with the market experiencing $962.40 million in liquidations.
- Ethereum (ETH) fell from $3,200 to $2,800 before recovering to $3,000.
- Other assets like BNB, Solana (SOL), and Dogecoin (DOGE) also experienced declines of 5-10% ¹.
*Market Recovery:*
- Despite initial fears, the crypto market has shown resilience, with Bitcoin rebounding to $65,170, marking a 2.66% gain.
- Ethereum and Solana have also seen substantial rebounds, up 7% and 12.8%, respectively.
*Possible Outcomes:*
- *Bull Run Potential:* If the conflict escalates and investors seek safe havens, BTC and other crypto assets could enter a prolonged bull run.
- *Risk of Correction:* Extended conflict and potential energy disruptions could impact mining processes, and global economic instability might trigger sell-offs ².
*Expert Insights:*
- Mike Novogratz, CEO of Galaxy Digital, predicts a price recovery after the initial sell-off, stating that BTC will resume its trend (higher) once the risk flush is over.
- Analysts attribute the downturn to anticipated consequences of war, such as rising commodity prices and high inflation, which could make interest rate cuts less likely ³.$BTC $DOGE
