Geopolitical conflicts, such as the Israel-Iran war, can impact Bitcoin (BTC) prices through various mechanisms driven by financial market dynamics and investor sentiment. Below is a brief explanation of their relationship:
1. Geopolitical Uncertainty and Market Sentiment:
Armed conflicts, like Iran's attack on Israel (October 2024) or Israel's retaliatory strike on Iran (June 2025), often spark fear in global financial markets. Investors tend to avoid high-risk assets like stocks or cryptocurrencies, including Bitcoin, and shift toward safe-haven assets such as gold, the U.S. dollar, or bonds. As a result, BTC prices may decline, as seen on April 13, 2024, when BTC plummeted over 8% to $61,510 amid escalating tensions, or on June 13, 2025, when BTC dropped from $109K to $103K after Israel's attack on Iranian nuclear facilities.