The impact of US bombing of Iran (or any major military escalation between two countries the size of the US and Iran) on the crypto market can be complex and varies based on the nature and timing of the event. But generally, here are the most significant potential impacts on the digital currency market:
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🔻 1. Increased geopolitical tension = increased volatility
When bombing or military escalation occurs:
Investor anxiety is increasing globally.
Capital moves from high-risk assets (like crypto) towards "safe havens."
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🔀 2. How does the market behave?
👎 Temporary decline in crypto
Markets may witness a rapid sell-off of digital currencies, especially Bitcoin and Ethereum, in the early hours of the escalation.
Reason: Investors are pulling their money into the dollar or gold as a safe haven.
👍 A subsequent rebound towards Bitcoin as a digital safe haven
Some investors see Bitcoin as a hedge against the global financial system.
A price rebound may occur if the crisis prolongs, especially if banks or traditional transfer networks (like SWIFT) are affected.
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📈 3. Additional potential effects:
Rising gold often goes hand in hand with rising Bitcoin.
Privacy coins (like Monero) may rise with an increased desire to protect identity in times of instability.
The oil market plays a role: Rising oil prices lead to inflationary pressures, affecting investors' decisions to buy crypto as a hedge.
