#IsraelIranConflict
The conflict between Iran and Israel generates geopolitical uncertainty, which historically drives investors towards assets considered 'safe' like gold. Cryptocurrencies, although decentralized, are still perceived by many as risky assets.
In light of the escalating tensions, high volatility is observed in the crypto market. Bitcoin, for example, has experienced significant drops, although it has also shown some recovery capability. Altcoins tend to amplify these losses. Investment flows into products like spot Bitcoin ETFs may also temporarily decrease.
In summary, global risk aversion tends to put downward pressure on the cryptocurrency market, demonstrating that, for now, they do not fully function as safe-haven assets in conflict scenarios.
