Advertise
Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
Reviewed by:
Qadir AK
Reviewed
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jun 20, 2025 10:23 UTC
-
Will the Crypto Market Crash If the U.S. Joins the Iran-Israel War?
Tensions rise as U.S. involvement in Israel-Iran conflict could shake Bitcoin and Crypto markets.
Meanwhile, Polymarket odds of U.S. military action surged to 62%, sparking investor fear.
If U.S enters into the war, Bitcoin may drop 10%–20% if U.S. joins war, dragging altcoins down further.
The crypto market is once again on edge, and this time, it’s not about regulations or interest rates — it’s about war. As tensions heat up between Israel and Iran, a new fear is emerging: What if the United States gets directly involved?
So, how will the crypto market react if the US joins the Israel-Iran War?
U.S. Entry Could Make Things Worse
If the U.S. steps into the ongoing Iran-Israel conflict, things could get much worse for global markets, especially crypto. With American troops already placed in the Middle East and rising concerns about Iran’s nuclear goal, this could turn into a large-scale geopolitical crisis.
Already, U.S. President Donald Trump has called on people living in Tehran, Iran’s capital, to leave the city immediately.
Posting this on Truth Social, Trump said Iran should have agreed to the deal he once proposed, calling the situation a “waste of human life.” He firmly stated, “Iran cannot have a nuclear weapon.”
62% Odds: U.S. May Join War
On Polymarket, a blockchain-based prediction platform, the chances of U.S. military action against Iran before August surged by 36% in just one day, now standing at 62%.
At the same time, the Israel-Iran conflict is spreading online. Iran’s largest crypto exchange, Nobitex, was recently hacked, losing $48 million in USDT.
A cyber group linked to Israel, known as Gonjeshke Darande or “Predatory Sparrow,” has claimed responsibility for the attack.
- Also Read :
- Top Reasons Why Altcoin Season 2025 Is Far From Sight
- ,
Bitcoin To See 10% – 20% Drop, If!
A U.S. entry would likely trigger a fresh wave of panic selling in the crypto world. Experts warn Bitcoin could quickly lose 10% to 20% of its value, dragging down Ethereum and other altcoins along with it.
We already got a taste of that in June, when Israeli strikes caused Bitcoin to dip 4.5% in one day, wiping out billions in market value. Even the Crypto Fear & Greed Index dropped from 65 to 48.
Still Hope — If Ceasefire Happens
Not all is doom and gloom. If a ceasefire or diplomatic breakthrough happens, Bitcoin has the potential to bounce back within weeks, just like it did after the Russia-Ukraine war escalated.
But until then, the market is likely to remain fragile.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
The crypto market is slightly down today, with its capitalization decreasing by about 2.3%. While major coins like Bitcoin and Ethereum are mostly unchanged, some altcoins have seen small dips. Geopolitical tensions, specifically the Israel-Iran conflict and potential U.S. involvement, continue to weigh on market sentiment.
If the U.S. directly enters the conflict, experts warn it would likely trigger widespread panic selling in the crypto market, potentially causing Bitcoin to drop 10% to 20%, dragging down Ethereum and other altcoins.
In June, Israeli strikes caused Bitcoin to dip 4.5% in one day, wiping out billions in market value and causing the Crypto Fear & Greed Index to drop significantly from 65 to 48.
If a ceasefire or diplomatic breakthrough occurs between Israel and Iran, Bitcoin has the potential to rebound within weeks, similar to its recovery after the escalation of the Russia-Ukraine war, easing market fragility.
Yes 
No 
