#IsraelIranConflict The conflict in Iran (or in any sensitive geopolitical region, such as the Middle East) can impact the cryptocurrency market in various ways — some direct, others indirect. Here are the main reasons:

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⚖️ 1. Cryptocurrencies as a refuge in times of uncertainty

• Geopolitical crises increase fear in traditional markets (stocks, fiat currencies).

• Investors seek alternative assets — such as gold and Bitcoin — seen as a store of value outside the banking system.

• Thus, the price of Bitcoin and other cryptos may rise in the face of conflicts, especially when there is a risk of widespread war.

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💵 2. Tensions with the dollar (USD) and sanctions

• Iran suffers economic sanctions from the U.S. that limit its access to the global financial system.

• Cryptocurrencies are used as a way to circumvent SWIFT and the dollar — for trade, mining, or external transactions.

• When the conflict escalates, the strategic use of crypto in sanctioned regions increases.

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⛏️ 3. Bitcoin mining in Iran

• Iran has been responsible for up to 4–7% of global BTC mining.

• In the event of bombings, power outages, or more severe sanctions, mining may be interrupted, affecting global hashrate (network power).

• This influences transaction fees, block times, and even market sentiment.

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🌍 4. Reaction of the global market

• The crypto market is sensitive to the global macroeconomic and political climate.

• Conflicts in the Middle East affect:

• Oil prices (which impact inflation);

• Interest rate decisions (Fed/Central Banks);

• Investor risk appetite.

• This directly reflects on the volume and direction of investments in assets like Ethereum, Bitcoin, etc.

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🔍 Practical example:

• In April 2024, when there were direct attacks between Iran and Israel, BTC rose more than 5% in two days, while stock markets fell.

• This movement was called the "rush to Bitcoin as digital gold."