#Why Is the Cryptocurrency Market So Volatile After the US and Israel Attack Iran?

Today’s escalation caused the total crypto market capitalization to drop from approximately $2.24 trillion to around $2.17 trillion, evaporating $70 billion to $128 billion in a short period.

① Risk aversion dominates: Cryptocurrencies are viewed as high-risk assets (similar to tech stocks) rather than "digital gold" safe-haven assets. Investors prioritize reducing holdings of highly volatile assets amid uncertainty, shifting to cash or traditional safe havens.

② Weekend amplification effect: US stocks and oil markets are closed, making 24/7 crypto trading the only liquidity outlet, leading to panic selling with no buffer.

③ Fragile leverage market: High leverage positions are quickly liquidated, creating a chain reaction.

④ Bitcoin long-term trend overlay: It has been declining for several months, and this situation worsens it.

Bitcoin has not demonstrated safe-haven properties this time (in contrast to gold); instead, it has moved downward in tandem with risk assets, which has been a point of recent market discussion.