- Bitcoin temporarily dipped below $63,000 but recovered within a few hours, rising above $65,000.
- Altcoins also suffered a crash, but most have already recovered, with Ethereum showing just a 0.5% loss over the last 24 hours at press time.
- The cause of the quick recovery seems to be markets confirming a bottom.
- Crypto markets have been bleeding since October 10, 2025, when several factors led to an imminent crash and a subsequent downtrend. The downtrend was further accelerated by a USD-driven liquidity crunch.
Markets See Little Impact of US-Israel-Iran War
Unlike the last time when crypto markets corrected almost 10% during the Israel-Iran conflict and the military actions on the atomic installations of Iran, the crypto markets have reacted minimally this time.
Bitcoin saw a dip below $63,000 during the initial reporting of the attacks on Iran and a subsequent hitback on the UAE, Saudi Arabia, and Qatar. However, the recovery was swift, and within a couple of hours, it got back above $65,000. The same was true for Ethereum and other altcoins: the former quickly rose above $1900 despite a short-term dip below $1840.
Below is the crypto market heatmap at press time for your ready reference.
Why was the Crypto Market Unfazed?
Crypto markets were in a short-term bear market since October 10, 2025, because of a dollar-driven liquidity crunch amid weaker demand for crypto among retail and institutional investors.
Bottom Formation
It is a frequently observed phenomenon that the crypto markets react little to negative news when they are at their bottom. The same has happened here. Since Bitcoin and most cryptocurrencies are already at their pre-Trump presidency lows, there is little room to decline.
This is because the importance of cryptocurrencies has increased multifold over the past one and a half years, driven by ETFs, Treasuries, and adoption. new use cases, and mainstream adoption of blockchain technology.
Negligible Crypto Users in Iran
Iran has suffered the worst in the current conflict, but it has a negligible crypto market.
The country accounts for roughly 5% of Bitcoin mining hashrate at its peak, but crypto as an asset is highly regulated in the country. As a result, the number of people with actual crypto holdings is negligible. Only a few companies that mine Bitcoin really have some holdings.
Related: Iranians are Mining Bitcoin for $1,325 with 50x Returns Despite Electricity Shortages
Details of the Military Conflict
The conflict unfolds as we speak, and so far, we have only a limited amount of information. However, based on what we have, we present it to you at its best.
Iran Attacked in a Joint US-Israel Operation
Iran has been attacked in a joint military operation between the United States and Israel, possibly due to the nuclear armament of Iran being active despite the military operations last time.
UAE, Qatar, Saudi Arabia Among Impacted Countries
In retaliation, Iran has bombed the UAE, Qatar, and Saudi Arabia, prominently citing their close ties with the US. The UAE has issued a warning for its citizens to seek immediate shelter, with other countries taking similar precautionary measures.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
