Another escalation of the conflict between Israel and Iran has shaken not only geopolitics but also global financial markets, including the cryptocurrency market.
📉 Sharp decline of Bitcoin
Amid reports of mutual shelling between Israel and Iran, the price of Bitcoin (BTC) fell by 3.6%, reaching a level of $104,000 per coin. This drop occurred almost instantly after the first reports from Associated Press and CNN, indicating the high sensitivity of the crypto market to geopolitical risks.
Ethereum (ETH) has also come under pressure — its price has dropped to $2,500, demonstrating correlation with Bitcoin's dynamics.
🧠 Why is the market reacting this way?
Cryptocurrencies, despite their decentralization and positioning as 'digital gold', are increasingly behaving like risky assets. In conditions of geopolitical instability, investors tend to move capital into more conservative assets — the dollar, gold, and US government bonds.
The BTC market is particularly sensitive to 'black swans' — unexpected events that can trigger panic. The conflict between Israel and Iran falls into this category, with possible consequences for the entire global economy.
🚨 State of emergency in Israel
In light of the shelling in Israel, a state of emergency has been declared, further increasing anxiety in global markets. Many international platforms have suspended operations with Israeli clients, and major funds have temporarily refrained from transactions with high-risk assets.
🛢 Oil prices are going up
Interestingly, against the backdrop of the cryptocurrency decline, oil prices are rising: Brent futures surged to $73.16 per barrel. This is due to fears of supply disruptions from a region critical to global energy.
The Japanese company Metaplanet acquired another 23.35 BTC for over $1.59 million, bringing its total holdings to 141 bitcoins.#MetaplanetBTCPurchase
This is part of a hedging strategy against the weakening yen and strengthening confidence in digital assets.
Metaplanet is increasingly following MicroStrategy's path, making Bitcoin the cornerstone of its financial policy.
🧭 What’s next?
Investors should closely monitor news from the region.
Short-term fluctuations in the crypto market may intensify depending on the development of the conflict.
If the situation stabilizes, a rebound in #BTC and #ETH is likely, but in the short term, high volatility and caution prevail.
