Bitcoin and Ethereum Slip as Iran Conflict Escalates

Bitcoin and ethereum lost value on Friday, reacting to the intensification of the conflict around Iran and a general decline in risk appetite across global markets. Cryptocurrencies, which some investors view as an alternative safe haven, were unable to fulfill this role this time and followed the broader market lower. Escalating geopolitical tensions traditionally lead market participants to prefer holding dollars and reducing positions in volatile instruments. Analysts warn that further escalation of the military conflict could trigger additional selling in the digital asset sector. Nevertheless, some experts believe that in a prolonged conflict, bitcoin could act as a capital preservation tool in countries directly involved in the crisis.