đš Will crypto markets crash if the U.S. strikes Iran?
đ° Crypto markets are already showing extreme stress as geopolitical tensions around a potential U.S. strike on Iran intensify. đ The Fear & Greed Index has plunged to extreme fear levels, signaling panic and defensive positioning across the market.
âż Bitcoin has slipped below key technical levels while the broader market has erased trillions from previous highs, reflecting weakening sentiment and liquidity drain. đ§ Shrinking stablecoin supply and falling liquidity suggest capital is pulling back, which historically happens near major market turning points.
đ Historically, sudden geopolitical shocks trigger a ârisk-offâ reaction where investors rotate out of volatile assets like crypto into safer assets such as gold or cash. â ïž Analysts warn that an escalation or military strike could cause further short-term sell pressure and volatility across BTC and altcoins.
đ However, a crash is not guaranteed; extreme fear phases have often appeared near market bottoms during past crises. đ§ If liquidity stabilizes and tensions cool, markets could rebound quickly after the initial shock.
đ Bottom line: a U.S.âIran strike would likely trigger short-term volatility and downside pressure, but it would be more of a panic-driven reaction than a guaranteed long-term crypto market collapse.