💥will war happen between us and iran💥
A full-scale war between the US and Iran would likely trigger an initial sharp decline in cryptocurrency prices due to widespread investor panic and a general flight to traditional safe haven assets like the U.S. dollar and gold. However, the long-term outlook is more complex and could see a potential rebound, particularly for Bitcoin.
Short-Term Impact: Price Drops and High Volatility
In the immediate aftermath of a major escalation or U.S. intervention, the crypto market would likely experience significant downward pressure and extreme volatility.
Sharp Sell-offs: Historically, major geopolitical crises have led to immediate sell-offs in high-risk assets, with investors seeking liquidity. U.S. airstrikes in June 2025 saw Bitcoin fall by over 4% in 24 hours, with the total crypto market cap losing hundreds of billions of dollars.
Altcoin Vulnerability: Altcoins like Ethereum (ETH), Solana (SOL), and others tend to experience even steeper declines than Bitcoin during such events, demonstrating their increased volatility.
Liquidations: The June 2025 conflict resulted in over $1 billion in liquidations, predominantly of overleveraged long positions, highlighting the market's sensitivity.
Long-Term Scenarios: Recovery or Turbulence
The mid- to long-term performance of the crypto market would depend on the duration and scope of the conflict:
Rapid Recovery Potential: If a U.S. intervention is brief and leads to a quick de-escalation, historical patterns suggest a potential price rebound within 4-6 weeks.
Inflationary Hedge Narrative: A prolonged war could lead to sustained high oil prices and global inflation. In such a scenario, the narrative of Bitcoin as a hedge against currency devaluation and an alternative to traditional finance could strengthen, potentially attracting more long-term institutional investment.
