On June 17, the Vice President of the United States, JD Vance, made a huge statement amid the ongoing Iran-Israel conflict, saying that President Donald Trump may decide he needs to take further action to end Iranian enrichment.
The speculation of the U.S. joining the war soared after Donald Trump took an early exit from the G7 Summit. In the interview, Trump said that he is planning “something better than a cease-fire” when it comes to the conflict with Israel and Iran.
For example, when Russia invaded Ukraine in February 2022, the cryptocurrency market saw two key effects. Initially, the biggest cryptocurrency, Bitcoin, plunged due to panic selling, soaring from approximately $44,000 to $34,000.
Then it surged as Ukrainians and Russians used cryptocurrency to move money, rebounding $48,000.
If war escalates, traders might sell Bitcoin for cash, which can cause a dip. Altcoins could drop harder due to higher risk. Also, if sanctions tighten, Middle Eastern investors may turn to Bitcoin (like Russians did). Gold and Bitcoin could rise together as “safe haven” assets.
However, stablecoins like USDT and USDC could become Trojan horses in countering these sanctions.
If Trump pushes for direct U.S. military action, markets may panic. This could also trigger dollar inflation fears as more people invest in Bitcoin as a hedge.
As per the latest report, $100 million has already been liquidated in 1 hour. Furthermore, Bitcoin has also plunged below $104,000 amid Israel-Iran war tensions, according to CoinMarketCap.
