#Cryptofuture Geopolitical conflict between the U.S. (and its allies) and Iran has significant, measurable effects on the cryptocurrency market—and here's how things stand:
---
🔻 Immediate Market Impact
Sharp crypto sell‑offs occurred following U.S. strikes on Iran’s nuclear sites:
Bitcoin dropped from around $106K to $100–101K, briefly wiping out **$40bn in crypto market cap **, with over **$636m of liquidations **—affecting 166,000 traders in one night .
Ether and Solana declined ~6–7%, along with widespread drops across altcoins .
Volatility spikes: One report noted liquidations in derivatives rose 55% over the prior day due to escalated tensions .
---
🔄 Resilience & Recovery
Weekend trading stability: Some observers noted Bitcoin's swift rebound—from $100.9K back to $102.3K—amid thin weekend liquidity .
Historical pattern: Cointelegraph highlights that BTC often dips briefly during regional conflicts but recovers quickly—previous Israel-Iran skirmishes showed resilience .
---
🌍 Macro Drivers & Correlations
**Flight to safety versus risk-off:**
In risk-off episodes, capital flows into crypto as a “non-traditional” safe haven. Long-term, inflationary pressures from war and energy supply shocks may boost crypto demand .
However, crypto closely tracks equities; Bitcoin’s 30‑day correlation with the S&P 500 is ~0.72—meaning equity selloffs heavily pressure crypto .
Oil prices matter: Disrupted supply (Strait of Hormuz risks) pushes oil higher → increasing inflation → could support crypto. But if equities fall more, crypto tends to drop too .
---
🛡️ Cyberconflict & Crypto Infrastructure
State‑level crypto hacks: Amid tensions, Israel‑linked hackers stole and “burned” over $90m from Iran’s Nobitex exchange—targeting crypto used by IRGC-linked actors .
This underscores rising cyber risks in crypto infrastructure during geopolitical conflict.
