$BTC

Middle East tensions shake global markets: What does this mean for cryptocurrencies?

Late last night, reports emerged that Israel had launched a military strike against Iran. This unexpected escalation sent shockwaves through global financial markets, leading to a sharp move towards risk aversion.

Market reactions were immediate:

• S&P 500 futures fell by about 2%.

• Crude oil prices rose by about 10%.

• Gold is experiencing renewed demand as a safe-haven asset.

Given the recent high correlation between U.S. stocks and $BTC , the cryptocurrency market reacted negatively to the news. Investors moved away from riskier assets and shifted to traditional hedges like oil and gold.