Middle East Tensions Drive Bitcoin Drop 15%

Geopolitical tensions have surged in the Middle East, with the US launching airstrikes on Iran's Fordow and Natanz nuclear facilities. This action has triggered a retaliatory response from Iran against Israel, further escalating the regional conflict. Additionally, Houthi forces have resumed attacks on US ships and threatened to block the Strait of Hormuz, a critical waterway for global oil trade. The Iranian President has condemned the US aggression and vowed retaliation, heightening the risk sentiment in the market.

In response to these developments, gold and oil prices initially opened higher but later pulled back. Bitcoin (BTC) experienced a significant drop, briefly falling to $98,115. The escalating conflict in the Middle East is expected to boost risk-off sentiment, with cryptocurrencies potentially becoming a safe haven due to their convenience in carrying and trading compared to traditional safe-haven assets like gold.

According to the analyst's forecast, if the situation in the Middle East continues to deteriorate, the market may reprice safe-haven assets. Furthermore, if international politics further heat up, it could propel BTC to challenge its historical highs. However, it is crucial to pay attention to potential policy interventions and increased market volatility to mitigate risks. As the conflict spreads and diplomatic efforts progress in parallel, investors are advised to dynamically observe the situation's evolution and adjust their portfolio allocation accordingly.

Short-term panic selling may trigger the most panic and bull trampling reactions, so it is essential to manage stop-losses and risks reasonably and avoid excessive panic. The analyst recommends that investors remain vigilant and prepared for potential market fluctuations as the geopolitical landscape continues to evolve.