Recent Military Actions:
- Israel launched airstrikes targeting Iran’s nuclear program, triggering immediate crypto market volatility
- Total crypto market cap fell by nearly 3% to $3.4 trillion from $3.5 trillion
Bitcoin Performance:
- Bitcoin declined 2.4% to $104,343 but remained relatively contained compared to traditional markets
- $1.2 billion in leveraged liquidations as BTC broke below $106,000
Cyber Warfare Escalation:
- Hackers with possible links to Israel drained more than $90 million from Iran’s largest cryptocurrency exchange Nobitex
- The conflict is spilling over into digital warfare between two cyber-capable nations
Economic Implications:
- JPMorgan forecasts oil prices may hit $120, which could tighten liquidity and push investors away from risk assets like Bitcoin
- Rising Treasury yields (near 4.4% on 10-year notes) may suppress crypto valuations if war spending expands fiscal deficits
Market Outlook:
Geopolitical tensions continue to create volatility in crypto markets. While Bitcoin showed resilience compared to traditional assets, escalating conflicts and potential oil price spikes could pressure digital assets further. Traders should monitor geopolitical developments closely.
