Global Tensions Rock Crypto Markets: Where Do We Go From Here?

Crypto markets are getting whiplash as geopolitical shocks send volatility soaring. Here's how traders are navigating the chaos—and why Wall Street still doesn't get it.

When the world shakes, crypto trembles first

Bitcoin's 15% intraday swings have become the new normal as hot spots flare up across the globe. Unlike traditional markets that get weekends off, crypto never sleeps—leaving traders glued to screens as news breaks across time zones.

The institutional 'hedge' that wasn't

Goldman Sachs analysts swear their crypto desks provide portfolio diversification. Tell that to anyone holding BTC futures during last week's liquidation cascade. Sometimes the 'digital gold' narrative shines brighter than the actual price action.

Where volatility meets opportunity

DeFi whales are quietly building positions while retail panics. The smart money knows geopolitical crises historically precede crypto's biggest rallies—if you can stomach the drawdowns.

As one hedge fund manager quipped: 'TradFi still thinks we're gambling while they lose billions on 'safe' emerging market debt.' The more things change...

Expectations for Cryptocurrencies

Just a few hours ago, Iran launched a retaliatory strike with approximately 30 missiles against Israel. Although the response was limited and did not extend to U.S. bases, Iranian media boast about preparing coffins for 40,000 to 50,000 U.S. soldiers. The U.S. and Israel’s efforts to prevent Iran from attaining nuclear capability might trigger a third world war.

“The U.S. attack will only strengthen our nuclear program.” – Iranian Military

Iran, which has often expressed readiness for negotiations, set a condition that Israeli attacks must cease. Now that facilities are destroyed, following today’s Iranian retaliation, the likelihood of reconciliation might increase, supporting the cryptocurrency market.

Prolonging the process might raise U.S. concerns about potential involvement from China and Russia. Facing massive debt, inflation risks, tariff crises, and recession threats, combining forces with Israel to attack Iran might not have been wise. Republicans began voicing anger towards Trump, whom they accuse of engaging in a non-affiliated war, while Democrats criticize him for breaking his peace-promising stance.

In the next 48 hours, depending on forthcoming news, volatility will likely spike. In his recent analysis, DaanCrypto observed that:

“Clearly, many events are unfolding worldwide, and I won’t delve into details. The potential U.S. intervention contributed to the recent weakness, prompting me to act cautiously without opening any positions, which proved beneficial. The critical aspect now is whether the situation escalates or leads to negotiations. I hope for the latter. While Bitcoin$102,623 ($BTC) remains relatively resilient, I’ll stay cautious until a short-term strengthening appears.

Altcoins suffered severe losses, and given the significant liquidity loss, a modest recovery is possible. However, many remain on a significant downward trend, so keep that in mind. I suggest watching and waiting for a clear situation to emerge. Historically, a similar environment to the last two weeks could have resulted in losses, but by being patient and recognizing market weaknesses, I turned this period into a successful trading week. Enjoy the rest of your weekend. Tomorrow will be turbulent.”

Bitcoin (BTC) and Ethereum (ETH)

ETH dropped below $2,300, even though it nearly hit $3,000 the previous week after a deal in Paris with China. Israeli missile strikes on Iran disrupted everything. Although BTC didn’t face massive losses, altcoins have consistently declined over the past six months, except for a few brief rallies. It is a situation poised for either commercial or real conflict.

“Currently, ETH is trading below previous support levels in a danger zone with little price movement, which might precipitate a rapid decline, so it’s positive that bulls can sustain this level for now. The fall could have been much deeper. I’ve marked intriguing levels on the chart. The first task for bulls is to reclaim and hold levels above $2,300. A dip at this level could be a major retest before further drops and inefficiency increase, making this a point to be closely monitored. Clearly, the local bottom at ~$2,210 has also become crucial.” – DaanCrypto

Carl Mood, however, is not as optimistic. He predicts BTC’s chart might break the symmetrical triangle, targeting $90,700, which could entail altcoin losses exceeding 30%.