The war/conflict involving Iran has been hitting the crypto market in a few ways.

Let's look at the breakdown of how the iran war is affecting the crypto currency market:

1. Short-term selloffs when tensions spike.

When news broke that the US and Iran exchanged strikes and Trump said the ceasefire was "over", Bitcoin and the broader market dropped fast.

BTC slipped to ∼$62,657, down nearly 1%

ETH, XRP, SOL* fell 1% to 2.3%

Another July 8 report: BTC fell more than 3% to around $61,691 after Trump’s comments.

Why? Traders worry that war = higher oil prices → higher inflation → higher interest rates. Higher rates make "risky" assets like crypto less attractive vs safe bonds. Brent crude also jumped nearly 6% to $78.55 on the same news.

2. Crypto as a “pressure valve” / safe haven in the region.

But it’s not all negative. Crypto is also being used because of the war:

After strikes started Feb 28, >$10.3M flowed out of Iranian exchanges in just days. Nobitex saw a 700% spike in outflows within minutes.

People use it to protect savings from rial collapse and inflation, and the regime/IRGC-linked wallets also move funds to bypass sanctions.

Iran’s crypto market is estimated at ∼$7.8 billion in 2025, with IRGC-linked wallets accounting for over half of flows.

Analysts call Bitcoin a “pressure valve” during geopolitical stress. Cross-border accessibility makes it useful when people are displaced.

3. The unusual part: both USD and crypto benefiting.
Usually, in war, money flows to gold/Treasuries. This time, the dollar AND crypto both got a boost. Reason: oil above $100 stokes inflation fears, which hurt Treasuries, while crypto gained from its accessibility. BTC even hit a 3-week high of $72,738 after a temporary ceasefire was announced.

Iran and the region are using crypto for sanctions, evasion, and capital flight.

So, the market is swinging hard on headlines. Volatility is high right now.

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