The Middle East war ignites the crypto world! The mutual missile attacks between Israel and Iran have led to a $3 billion liquidation in the crypto market. Bitcoin is staging a defense at the $100,000 mark, while Ether has fallen below $2,400, and altcoins are collectively collapsing!

Why can war shatter the crypto world?
There are three reasons:
First is the liquidity crisis, as Middle Eastern wealthy capital urgently withdraws, the redemption volume of stablecoin USDT surged by 40% yesterday, and the exchange was nearly bank-run;
Second, there is leverage liquidation. According to Deribit data, 60% of the open contracts in Bitcoin are leveraged over 5 times. As soon as the news of the war broke, it triggered a chain liquidation.
Thirdly, the energy crisis. Iran is a major oil country, and once the Strait of Hormuz is blocked, crude oil prices may double, putting inflationary pressure directly on risk assets.
However, the crypto world has not completely collapsed, and there are three reasons for this:
First, there is the ETF support. Institutions like BlackRock and Fidelity bought 1.2 billion USD worth of Bitcoin in the market yesterday, and the average daily trading volume of spot ETFs accounts for over 55%, becoming a "lifeline";
Second, the dark line ecosystem: the Ukrainian government received 127 million USD in aid through cryptocurrency, and the underground network in Gaza relies on Bitcoin mining machines to maintain communication. The essential demand in war-torn areas has supported the bottom price.
Thirdly, the market resilience. After experiencing multiple black swan events, the crypto world investors' mentality has gradually matured, no longer blindly panicking.

During the war, some investment opportunities may also arise.
For example, regarding stablecoins, Iran's largest exchange was hacked, with tens of millions of dollars in stablecoins stolen. However, the transfer volume of USDT increased by 440% week-over-week, indicating that stablecoins have become a lifeline during the war. One can pay attention to the premium opportunities of USDT and USDC.
For example, privacy coins like Monero (XMR) and Dash (DASH) are being used by users in the Middle East to circumvent sanctions, leading to a surge in demand, but it is important to be wary of regulatory risks.
There is also Energy Coin. Iran is a major oil country. Once the energy supply chain breaks, BTC may become "digital oil," but the short-term risks are too high, so don't invest heavily; small amounts can be allocated.

Remember: Don't FOMO, don't leverage, survive to wait for the bull market!