The Israel-Iran conflict has significantly impacted the crypto market, causing brief downturns and increased volatility. When tensions escalated, Bitcoin (BTC) dropped as low as $60,800, resulting in approximately $962.40 million in liquidations. However, the market showed resilience, with Bitcoin rebounding to $65,170 and gaining 2.66% in 24 hours.
*Key Effects on Crypto Market:*
- *Volatility*: Geopolitical tensions lead to sharp price drops and rapid market fluctuations.
- *Investor Sentiment*: Uncertainty and caution dominate investor decisions, potentially causing further market disruptions.
- *Safe-Haven Asset Debate*: Bitcoin's performance during crises raises questions about its reliability as a safe-haven asset, with some analysts believing its long-term prospects remain intact ¹ ².
*Impact on Specific Cryptocurrencies:*
- *Bitcoin (BTC)*: Dropped to $65,500 after Israel's attack on Iran, but quickly recovered.
- *Ethereum (ETH)*: Fell by 3% to $2,450 levels, extending weekly losses to over 7.68%.
- *Solana (SOL)*: Dropped by 6.3% to under $165.
*Market Outlook:*
- *Short-term Uncertainty*: Analysts expect continued volatility due to geopolitical tensions.
- *Long-term Prospects*: Some believe the crypto market's resilience will strengthen with increased institutional participation and robust risk management strategies ³ ².