1. Why did Bitcoin drop during the Iran conflict?
Investors initially moved away from risky assets during rising geopolitical tension, leading to rapid selling pressure.
2. Why did Bitcoin recover so quickly?
After the panic eased, buyers returned as markets stabilized and some investors viewed Bitcoin as a hedge against uncertainty.
3. How do oil prices affect Bitcoin?
Higher oil prices raise inflation fears, which influence central bank policy and overall market sentiment, impacting crypto demand.
4. Are institutional investors affecting Bitcoin’s volatility?
Yes, large ETF inflows and outflows can cause significant price changes, especially during global events.
5. Will the Iran conflict impact Bitcoin long-term?
Short-term volatility is clear, but long-term direction will depend more on global liquidity, adoption trends, and monetary policy.