Iran Conflict Fuels Bitcoin Hashrate Collapse Fears, but Experts See Negligible Impact

Iran’s attack on oil facilities in the United Arab Emirates heightened geopolitical risks in the Middle East, stoking fears that a broader conflict could disrupt energy supplies and fuel inflation. Although Bitcoin and other cryptocurrencies are often viewed as alternative assets, they remain vulnerable in the short term to selloffs alongside stocks and other risk assets, making the $80,000 level a key gauge of market sentiment.

Bitcoin briefly swung sharply around $80,000 after news of the attack emerged, reflecting a tug-of-war between demand for safe havens and bargain buying. Reports did not provide the exact date of the attack or the price swings, nor did they disclose the full intraday high and low. Markets are now watching whether tensions between Iran and the UAE escalate and whether rising oil prices put further pressure on cryptocurrencies and other risk assets.

One month after the United States and Israel launched military operations against Iran, U.S. military intelligence assesses that only about one-third of Iran’s missile stockpile has been destroyed, leaving Tehran with two-thirds of its arsenal. The remaining firepower sustains the risk of further escalation in the Middle East and is weighing on sentiment toward highly volatile assets such as Bitcoin.

Reuters reported that the United States has so far been able to confirm the destruction of only one-third of Iran’s missile stockpile. Crypto markets plunged as demand for safe-haven assets grew, with Bitcoin first falling below $68,000 and then breaking below $66,000. Ether dropped under $1,980, while crypto liquidations across the market exceeded $500 million in nearly 24 hours.