Escalation in the US–Iran conflict typically triggers short-term bearish pressure on Bitcoin (BTC) as investors shift to cash, oil, and traditional safe havens. However, once the initial panic fades, BTC often rebounds strongly, driven by inflation fears, liquidity injections, and its long-term “digital hedge” narrative. Current market behavior shows BTC is still trading like a risk asset first, hedge later, with volatility expected to remain high throughout 2026. �