#IsraelStrikesIranBTCPlunges Bitcoin's drop amid Israeli strikes on Iran is a classic reaction of financial markets to a sudden geopolitical crisis. In moments of sharp escalation of military conflicts, investors are seized by panic and strive to reduce risks as quickly as possible. They massively sell off high-risk assets, including cryptocurrency, in order to transfer capital to safe-haven instruments — gold, dollars, or short-term US Treasury bonds.

This process is called "flight from risk" (risk-off). The crypto market operates 24/7, so it is the first to take the hit and react to world news instantly, before traditional exchanges open. Usually, after the first wave of panic and clarification of the situation, the market stabilizes, and large players begin to buy up cheaper assets.$BTC ‌