Why Is Crypto Up Today? Bitcoin Surges as Iran-Israel Conflict Entering Day 4

As geopolitical tensions escalate in the Middle East, many investors are left wondering: why is crypto up today? Despite a brief weekend dip triggered by the conflict between Israel and Iran, Bitcoin (BTC) has rebounded strongly, now trading above $107,000.

However, for those familiar with Bitcoin’s behavior during past international crises, this recovery isn’t entirely surprising. Historically, BTC tends to experience a heavy but short-lived drop in response to major global events, only to bounce back quickly and often reclaim more than it initially lost.

As much of the western world is concerned with WW3, Bitcoin just hit $106k.

A true hedge against global insanity

— Toby Cunningham (@sircryptotips) June 16, 2025

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The Israel-Iran Escalation Is Probably Far From Over, But Bitcoin Is Already Recovering

The initial sell-off began late Friday after Israel attacked Iran on a “pre-emptive” strike against military targets, killing 128 civilians in that first attack. Israeli Prime Minister Benjamin Netanyahu defended the strikes by claiming Iran was nearing the capability to build nuclear weapons.

An interesting fact is that while Israel has repeatedly warned that Iran is close to developing nuclear weapons, a claim made consistently for over three decades, it has itself acquired a nuclear arsenal without officially acknowledging it. Unlike Iran, Israel has never signed the Nuclear Non-Proliferation Treaty (NPT) and is widely believed to possess dozens of nuclear warheads developed outside the framework of international oversight.

Bitcoin fell as low as $103,000 in those first hours after the attack before bouncing modestly to $104,000 over the weekend. At first glance, the conflict appeared to weigh on BTC sentiment. But when global markets reopened Sunday night, Bitcoin quickly reversed course, reclaiming momentum and trading above $107,000.

This rebound closely tracks the movement of the U.S. Dollar Index (DXY), which fell to 98 at Monday’s open. Since Bitcoin tends to move inversely to the dollar, this drop acted as a tailwind for crypto prices. In other words, one major reason why crypto is up today is simple: the dollar is down.

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So far, markets appear to view the current Israel-Iran escalation as localized. The U.S. has not entered the conflict, at least not directly, and Russia has declined to support Iran militarily, helping to ease fears of a broader regional war. This perception has likely contributed to the calm in both equity and crypto markets.

This status quo could change abruptly: nearly 30 U.S. Air Force refueling tankers are heading east across the Atlantic, sparking speculation of a military buildup. Analysts suggest they may support Israel amid rising tensions with Iran or participate in NATO drills. Their destination remains unclear, with possible stops in Europe or the Middle East bases.

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