 ▲ Bitcoin (BTC) / ChatGPT-generated image |
As military tensions between the United States and Iran reach a peak, the virtual asset market, including Bitcoin, is losing upward momentum and drifting amid macroeconomic uncertainty.
According to a March 11 report by cryptocurrency-focused outlet CoinGape, as the war between the U.S. and Iran entered its 12th day, risk assets such as Bitcoin (BTC) are experiencing extreme volatility amid fears of full-scale war. U.S. Secretary of Defense Pete Hegseth announced that the military would carry out the largest-ever precision strikes in response to Iran’s missile provocations. This geopolitical crisis has dampened investor sentiment in the virtual asset market, serving as a key factor increasing downward pressure across the sector.
The virtual asset market is particularly sensitive to sharp changes in energy prices stemming from the war. As the G7 discussed releasing 400 million barrels of strategic petroleum reserves, sending crude oil prices fluctuating down to the $84 level, Bitcoin mirrored the volatility. Experts noted that disruptions in the oil market are directly impacting inflation expectations and liquidity conditions, thereby hindering a rally in virtual assets.
Delays in political negotiations are also heightening uncertainty in the virtual asset market. U.S. President Donald Trump left open the possibility of talks premised on Iran’s unconditional surrender, but as Iran refused to back down, demand for safe-haven assets strengthened. Secretary Hegseth declared that the U.S. would “permanently eliminate Iran’s military bases and nuclear threat,” underscoring the administration’s commitment to continued hardline military operations. This confrontational dynamic is becoming a barrier to capital inflows into the virtual asset market.
Within financial markets, movements to avoid risk or bet on declines are becoming more pronounced. One trader’s establishment of a $14.45 million short position in crude oil clearly illustrates the instability investors currently perceive. Investors in Bitcoin and other virtual assets have also largely refrained from additional buying, shifting to a wait-and-see stance until geopolitical risks are fully priced in.
As the conflict with Iran reaches a critical juncture, the future trajectory of the virtual asset market is likely to depend on the success of U.S. military operations and the stabilization of oil prices. Amid concerns over supply chain disruptions and shifts in dollar liquidity, Bitcoin is being tested as a store of value. Investors are closely monitoring developments in the Middle East and potential changes in U.S. monetary policy while focusing on risk management.
*Disclaimer: This article is for investment reference purposes only and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*