#IsraelIranConflict IsraelIranConflict ⚔️ Israel - Iran Conflict: Impact on Crypto (April 2024 Context)

📉 Immediate Market Reaction:

• Bitcoin (BTC): drop of about 4 to 5% within a few hours.

• Ethereum (ETH): same trend, rapid decline around 4.5%.

• Altcoins: generally more volatile, some have dropped by up to 10%.

📊 Why this reaction?

1. Flight to safety:

• In times of geopolitical conflict, investors flee risky assets (like crypto) in favor of gold, the US dollar, or bonds.

2. Extreme uncertainty:

• A military escalation in the Middle East raises fears of global economic instability, prompting markets to react sharply.

3. Impact on global markets:

• Stock markets (S&P 500, Nasdaq, DAX…) have also corrected.

• Crypto is highly correlated with these markets during panic periods.

⸻

🔁 Short-term Result:

• Extreme volatility in crypto markets.

• Major support levels like 25,000 $ for BTC and 2,400 $ for ETH have been tested (or even temporarily breached).

• Increase in selling volume and short Open Interest on derivatives.