The war between Israel and Iran could significantly impact the cryptocurrency market. Here are the main factors
📉 1. Increase in geopolitical tension = decrease in risk assets
Cryptocurrency, especially Bitcoin, is often viewed as a risk asset. In times of war, investors prefer to move to safe assets:
US dollar, gold, government bonds
→ Therefore, the price of BTC and other cryptocurrencies may decline.
🪙 2. BTC as 'digital gold'
In some cases, Bitcoin is seen as a protective asset, similar to gold. If distrust in governments/currencies rises —
→ some investors may 'park' in BTC, which conversely pushes it up.
But this does not always work.
💥 3. Impact on oil and global markets
Iran is one of the largest oil exporters. War may:
trigger an increase in oil prices
cause inflationary risks
affect stock markets
→ This indirectly affects cryptocurrency markets, which often correlate with traditional ones.
🚫 4. Restrictions and sanctions
If the war leads to new sanctions or blocking of SWIFT, then the demand for decentralized methods of transferring funds will increase
→ USDT, BTC, ETH may be used as an alternative to bank transfers
