$ADA What will happen to bitcoin amid the escalation of the conflict between Iran and Israel?

Analysts share their expectations about the potential impact that the increase in tension between Israel and Iran could have on bitcoin. BTC fell nearly 4% after the first recorded attacks between the two countries.

Bitcoin mining could also be affected if Iran closes the Strait of Hormuz.

The escalation in the conflict between Israel and Iran has once again brought to light the influence of global geopolitics on Bitcoin. Various analysts have expressed their opinions on what could await the digital currency and its ecosystem in the current context of tension.

In market terms, last Thursday, June 12, the price of bitcoin (BTC) dropped almost 4%, going from USD 108,500 to USD 103,500 following the massive airstrike launched by Israel against Iran. This triggered a series of retaliations between both nations that continue to be reported in media around the world. According to analysts like Markus Thielen from 10x Research, BTC falling below USD 106,000 could return it to a consolidation phase, with support at USD 100,000. John Glover, CIO of Ledn, sees rather an entry into a corrective phase that could bring BTC close to USD 88,000.

On the optimistic side, several analysts expect a swift recovery of the upward trend based especially on historical precedents. Anthony Pompliano, an investor and enthusiastic Bitcoin entrepreneur, explained that BTC's immediate reaction to this escalation was similar to what happened in October 2024, when the price fell 3% after Iran launched hundreds of missiles at Israel. However, within 48 hours, BTC's performance was superior to that of gold and oil, assets recognized as safe havens. This precedent opens the possibility for history to repeat itself.

André Dragosch, Head of Research for Europe at Bitwise, published a study showing that bitcoin tends to react with declines in the face of geopolitical conflicts.