#IranIsraelConflict

Effect of Iran 🇮🇷 Israel 🇮🇱 war on crypto👇🏻

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The Israel-Iran conflict has significantly impacted the crypto market, leading to increased volatility and a shift towards safe-haven assets. Here are some key effects:

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- *Bitcoin's Value Drop*: Bitcoin's price plummeted 4% in 24 hours, falling to around $103,000-$105,184.68, due to heightened geopolitical tensions and potential economic instability.

- *Market Capitalization Decline*: The overall crypto market cap dropped to $3.27 trillion, with a 2.71% decrease, while trading volume surged to $173.14 billion as panic selling took over.

- *Altcoin Performance*: Major altcoins like Ethereum, Solana, Dogecoin, and XRP saw significant declines, ranging from 5-8.5%.

- *Investor Sentiment*: The Anxiety & Greed Index switched to neutral, indicating a balance of anxiety and confidence among investors.

- *Potential Impact of Oil Price Surge*: JPMorgan predicts that if the conflict escalates, oil prices could hit $120 per barrel, potentially driving US inflation to 5% and influencing the Federal Reserve's interest rate decisions.

- *Interest Rate Hikes*: Possible interest rate hikes by the Federal Reserve could reduce liquidity and increase borrowing costs, negatively impacting Bitcoin's price.

- *Safe-Haven Demand*: Investors are seeking safe-haven assets like gold, with its price surging to $3,400-$3,450 per ounce, a record high driven by geopolitical uncertainty.

- *Long-Term Outlook*: Despite short-term volatility, some analysts believe the fundamentals of crypto remain strong, and dips caused by geopolitical conflicts can be great buying opportunities.¹ ² ³