The conflict between Israel and Iran has had a significant negative impact on the crypto market. Geopolitical tensions create fear and uncertainty, causing investors to pull their money out of risky assets like cryptocurrencies. During the height of the Israel-Iran conflict in April 2024, the crypto market lost over $200 billion in market capitalization within days. Major coins like Bitcoin and Ethereum saw sharp price drops. Such instability leads to reduced investor confidence, lower trading volumes, and a shift toward safer investments. As a result, the crypto market often enters a bearish phase during major global conflicts like this.
