The escalation of the Middle East situation triggers turmoil in the global financial markets

Late Thursday night, Israel launched airstrikes against targets inside Iran, a move that shook the global financial markets and triggered widespread sell-offs of risk assets, including the cryptocurrency market.

According to market data, in Friday's morning session, the price of Bitcoin fell by 5%, dropping to $102,900. This trend echoes the performance of other risk assets and reflects investors' concerns over rising geopolitical risks.

At the same time, risk aversion has driven gold prices to rise significantly, with spot gold once climbing to a high of $3,429. This trend of funds flowing into traditional safe-haven assets highlights the market's uncertainty regarding the current situation.

Market analysts point out that Israel's military actions against Iran have intensified tensions in the Middle East. Israel claims that the airstrikes targeted military objectives near Tehran and Tabriz, describing them as a "preemptive" action in response to the "growing threat." Israeli Prime Minister Netanyahu emphasized that this operation could last for several days until the threat is neutralized.

Iran has not yet made an official response to this incident. However, local media reports that explosions did occur in the affected area, leading to disruptions in air traffic. U.S. officials stated that they are closely monitoring the situation but have not made specific comments regarding this operation.

Professionals in the cryptocurrency market believe that the market volatility caused by geopolitical risks is not a new occurrence. They point out that similar events have previously triggered short-term market turmoil, but as the situation eases, the market often rebounds quickly. Some analysts even view such moments as potential investment opportunities.

! [Israeli airstrikes on Iran, your crypto wallet loses more?] ](https://img-cdn.gateio.im/webp-social/moments-4d7630f7dc5c9f87f81685ea02ff5add.webp)

Although Bitcoin's price may fluctuate with risky assets in the short term, in the long run, institutional investors' allocation strategies are gradually becoming the main factor influencing its trend. This explains why Bitcoin may follow the fluctuations of risky assets in the short term, but in the long run, it has the potential to outperform gold.

In addition to cryptocurrencies, this geopolitical event has also had a significant impact on other financial markets. Oil and stock futures prices have both declined, reflecting investors' concerns about the potential escalation of regional conflict risks.

Overall, the sudden escalation of the situation in the Middle East has once again highlighted the sensitivity of global financial markets to geopolitical events, as well as investors' tendency to avoid risk in the face of uncertainty. Market participants will continue to closely monitor developments and assess their potential impact on various asset classes.