$BTC 🕊️ Crypto & the Conflict: Ongoing Middle East War Effects 🕊️

1. Risk-Off Sentiment Triggers Sell-Offs

Bitcoin dipped below $103K after Israel’s strikes on Iran, as investors rushed from risky assets in response to geopolitical tensions .

Earlier this week, amid escalating conflict, BTC plunged ~2% and Ethereum dropped nearly 6%, with oil prices jumping 5%—signs of broad market caution .

2. Volatility Whiplash: Snap Recoveries Possible

Despite sharp drop-offs, BTC bounced back above $106K when the conflict showed signs of de-escalation .

Analysts note this pattern—crypto tends to dip at first but often recovers within days as liquidity returns and risk appetite rebounds .

3. Safe Haven Debate: Gold vs. Bitcoin

Gold prices rose alongside the sell-off—classic safe-haven behavior .

Yet BTC’s limited safe-haven performance during this crisis challenges the narrative of “digital gold” .

4. Geopolitical Cyber‑impacts on Exchanges

The Predatory Sparrow hack on Iran’s Nobitex exchange, destroying ~$90M in crypto, highlights how cyber-warfare is bleeding into crypto infrastructure during conflicts .