Israel-Iran War: Impact on the Cryptocurrency Sector
1. Market Concerns: The war increases global uncertainty, causing investors to exit high-risk assets such as the cryptocurrency sector. Prices often decline.
2. Oil and Inflation: Rising oil prices can fuel inflation, necessitating a tighter monetary policy - which is bad for the cryptocurrency sector.
3. Increased Local Demand: In conflict zones, people may turn to Bitcoin as a means of preserving value, but this is often outweighed by global sell-offs.
4. Cyber Threats: The war can lead to cyberattacks on cryptocurrency trading platforms and infrastructure, increasing risks.
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Example: After the strikes in Israel, the price of Bitcoin fell to below $103,000, and Ethereum dropped to around $2,520.