The impact of the Israel-Iran conflict on the cryptocurrency market presents a complex situation:

1. **Safe-Haven Demand**: Some funds may flow into Bitcoin (characterized as "digital gold"), temporarily boosting prices, but sustainability is questionable.

2. **Risk Linkage**: If the conflict escalates and triggers a global sell-off of risk assets, the cryptocurrency market will be impacted by tightened liquidity, with altcoins particularly under pressure.

3. **Capital Flows in the Middle East**: Middle Eastern investors may transfer assets through cryptocurrencies, increasing local market volatility.

4. **Energy Disruptions**: Iranian Bitcoin mining accounts for 7% of global hash power; if targeted, it could temporarily affect network hash power.

**Key Contradiction**: The coexistence of traditional safe-haven properties and high-risk asset characteristics will significantly elevate volatility (analogous to the VIX indicator).