The US-Iran war has significantly impacted the crypto market, with Bitcoin experiencing sharp volatility. When tensions escalated, Bitcoin initially dropped from around $63,000-$64,000 to $60,000, but quickly rebounded to $68,000-$70,000 as risk-off panic eased and ETF-driven buying returned .
The crypto market's reaction to the conflict can be broken down into phases:
Fear: Bitcoin drops quickly, altcoins fall harder, and leverage gets liquidated.
Recovery: Bitcoin shows resilience, with institutional buyers treating dips as opportunities.
Experts suggest that while Bitcoin still reacts like a risk asset in the short term, it's becoming increasingly resilient. Institutional investors, indicated by Bitcoin ETF inflows, are accumulating Bitcoin even during global uncertainty .
The impact of the US-Iran war on the crypto market is likely to continue, with volatility expected to stay. If oil facilities are damaged or the conflict expands, markets may react more severely .$BTC
