As the conflict between Israel and Iran escalates, Bitcoin’s (BTC) price has remained stable.
A look back at previous conflicts shows a similar trend, with factors like adoption and institutional involvement playing a key role.
Analysts like André Dragosch, head of research at Bitwise’s ETP platform ETC Group, have argued that Bitcoin’s price can suffer in the days following the outbreak of a conflict. While volatility in BTC’s price is overall on a downtrend, it is still seen as a risky asset and is likely to be sold quickly when a war breaks out.
Still, as Mithil Thakore, co-founder and CEO of Bitcoin L2 liquidity protocol Velar, previously told Cointelegraph, “Over the longer term, geopolitical conflicts raise the prospects of higher inflation rates globally due to factors like increased fiscal spending, looser monetary policy, supply-chain disruptions and commodity price spikes, which should all benefit Bitcoin.”
Looking at past events of geopolitical instability, Bitcoin has shown remarkable resilience, but a lack of movement doesn’t necessarily mean that Bitcoin is a hedge during times of uncertainty.
Here’s a look at a few instances where Bitcoin’s price has reacted, or not reacted, to large-scale armed conflict in the world:
Bitcoin’s price is resilient during times of conflict, but it can also depend on elements like adoption or institutional involvement.
Israel-Iran war (June 13, 2025)
On June 13, Israel struck dozens of targets in Iran in the largest attack on the country since the Iran-Iraq war in the 1980s. The two countries, arch-rivals in the Middle East, have continued strategic missile strikes against each other over the following days.
Despite concerns over wider escalation, including calls by Israel to involve the United States, markets have largely shrugged off concerns. Bitcoin is no exception.
Bitcoin’s price immediately following Israel’s missile strikes on Iran. (The red arrow marks the start date of the conflict.) Source: TradingView
While the asset saw a brief drop immediately after the bombings began, the price has largely recovered. Crypto analyst Za said,…
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