- Israel’s strikes near Tehran triggered widespread panic across global crypto markets.
- Bitcoin, Ethereum, and XRP posted sharp losses amid heightened geopolitical risks.
- Crypto’s sensitivity to global conflict challenges its role as an inflation hedge.
The cryptocurrency market faced sharp declines following a sudden escalation in Middle East tensions. Israel launched targeted airstrikes near Tehran and Tabriz, citing threats from Iran’s nuclear program.
As fears of a broader regional conflict intensified, investor sentiment turned negative, prompting a widespread sell-off across digital assets. Major cryptocurrencies including Bitcoin, Ethereum, and XRP experienced significant intraday losses, reflecting the market’s sensitivity to geopolitical uncertainty.
Israel’s Preemptive Strikes Heighten Global Tensions
According to Israeli authorities, the airstrikes focused on Iranian military infrastructure in response to growing concerns about Tehran’s nuclear ambitions. The operation followed a series of intelligence assessments and high-level meetings between Israeli and U.S. defense officials. While Washington has yet to formally respond, U.S. defense analysts are reportedly monitoring the situation closely.
The Israeli government emphasized the strategic necessity of the operation. In press briefing Israel prime minister described Iran’s nuclear capabilities as an imminent threat not only to Israel but to global security. While Iran has not issued an official statement, state-run media confirmed reports of explosions and flight disruptions across affected regions.
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Israeli Prime Minister Netanyahu issues a statement on Israel’s strike against Iran and its nuclear program: pic.twitter.com/gd4A8DYKHX
The military operation has sparked renewed concerns of a prolonged conflict in the Middle East. Analysts warn that any extended confrontation could have far-reaching effects on energy markets, trade, and global financial stability.
Crypto Markets React Swiftly to Regional Shockwaves
The growing instability had an immediate impact on the cryptocurrency sector. Bitcoin fell 3.68% in the last 24 hours, dropping to $104,013. Despite gaining 1.2% over the past week, BTC’s market sentiment turned sharply bearish following the news.
Ethereum posted a steeper loss, sliding 9.68% to $2,502.92. The token’s weekly gain of 1.97% was quickly overshadowed by the latest downturn. XRP also declined 6.86% to $2.10, erasing recent gains and extending a 7-day loss of 1.21%.
This drop highlights the growing correlation between crypto markets and macroeconomic events. Traditionally seen as safe havens during inflationary periods, digital assets now show increased vulnerability to geopolitical shocks.
