#IsraelIranConflict

What is the impact of current events on the cryptocurrency market?

Firstly: There is an immediate impact in the short term

- Increased tension = increased volatility

- A rapid and temporary drop in price occurs, especially if there is a threat of escalation of conflict.

- A shift of liquidity towards safe havens

Investors are moving towards gold or the US dollar

Which may lead to a drop in cryptocurrency prices.

Secondly: The impact in the medium to long term:

Reliance on cryptocurrencies as a hedge in case new sanctions are imposed or local financial disruptions occur (like in Iran), may increase the demand for cryptocurrencies to circumvent restrictions or preserve value.

- Using cryptocurrencies to bypass international restrictions

Iran and some entities may resort to Bitcoin and other currencies for cross-border payments, as seen in previous cases like Russia and Venezuela.