#IsraelIranConflict 🌍 Why crypto is slumping amid the Iran–Israel conflict

1. **"Risk‑off" sentiment**

With Israel launching airstrikes on Iranian targets in mid‑June 2025, global fear spiked. In such uncertain times, investors flee volatile assets like Bitcoin and Ethereum in favor of safe havens like gold, the U.S. dollar, yen, and Swiss franc .

2. Liquidations and panic selling

Over $1 billion in crypto positions—mainly long trades—were force-liquidated in the past day alone due to sudden price drops and margin calls .

3. **Failure to act like "digital gold"**

Although Bitcoin is often hailed as a haven asset, it behaved more like a tech stock—dropping ~2–4%, whereas gold rose around **1%** .

4. Macro ripple effects

The conflict drove oil prices up 7–11% and boosted U.S. dollar and bonds. That fuels inflation and could influence central bank decisions—creating a broader risk-off environment that weighs on crypto too .

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📈 Is there a rebound coming?

Technical analysts point out that Bitcoin hit a support level (~$103 k), similar to patterns seen preceding rallies in October 2024. Some believe this could be a “liquidity grab” setup for renewed upside .

Long-term view from experts like Dom Kwok says geopolitical dips are often short-term and may represent attractive entry points if fundamentals remain intact .

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✅ Takeaway

Short-term: Heightened geopolitical tension = heightened volatility. Crypto often declines in flight-to-safety moves.

Medium-to-long term: If the conflict doesn’t spiral into wider war and fundamentals hold, crypto assets might rebound once calm returns.

Tip: If you’re holding or trading, stay alert—watch price support levels and consider strategies like reduced leverage or stop-losses.