Bitcoin took a sharp tumble on Saturday amid a frightening uptick in geopolitical tensions. Following news that Iran's fundamentalist rulers had launched a massive air attack on Israel, the price fell from around $70,000 to $62,000—a more than 10% drop—while some altcoins plunged 15% or more. Crypto markets rebounded slightly on reports Israel and its allies shot down over 99% of the incoming drones, cruise missiles, and ballistic missiles, but Bitcoin was still trading closer to $65,000 by Monday morning.

While the crisis appears contained, at least for now, the scary episode serves a fresh challenge to one of the crypto world's favorite narratives-that if the world goes to hell and countries collapse, Bitcoin will flourish as a store of value. Instead, as the weekend's sudden price drop showed, investors are more inclined to dump Bitcoin than to buy it. Meanwhile, gold-which many view as the original and ultimate store of value-ticked up at the height of the weekend's crisis.

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