Cryptocurrency markets have witnessed a sharp decline following Israeli strikes against Iran, as follows:

Bitcoin dropped over 24 hours by between 2–4%, recording levels ranging from $103–105k.

Ethereum fell by about 5.5–9%, while Solana and XRP experienced greater losses (around 9% and 5% respectively).

A sharp increase in liquidations occurred, surpassing $1 billion, with about $450 million pertaining to Bitcoin and $300 million to Ethereum.

The total market capitalization index fell from around $3.47 trillion to $3.22 trillion, representing a loss estimated at $0.25 trillion.

Description:

The behavior of digital currency resembles "risk-on assets", rather than a safe haven, as investors abandoned it in favor of traditional safe assets like gold and government currencies.

Gold rose by about 1–1.7%, while safe currencies such as the US dollar, yen, and Swiss franc appreciated.

Outlook:

The majority of analysts believe that the declines are linked to coercive conditions (short-term geopolitical). Historically, the market typically rebounds after similar declines.

Some see this as a buying opportunity during the dip, especially with continued institutional flows (such as ETF funds) and strengthening market confidence in the infrastructure.