The Iran War Tests Bitcoin and Crypto Market Resilience

The Iran war has gripped the world for three weeks, and oil and gas prices have skyrocketed. Bitcoin has seen gains during the same period, but other news also reveals negative effects.

Well over 10,000 people regularly attend the Token2049 crypto conference series, one of the largest industry gatherings worldwide. The event was originally scheduled to take place in Dubai in a month, but organizers have now postponed it for another year, until 2027. A statement cites “uncertain circumstances” as the reason, a euphemism for the bombings currently plaguing the United Arab Emirates. The Iran War is showing its true colors, and the postponement of Token2049 in Dubai is just one consequence.

Bitcoin miners were active in the Middle East due to low energy prices, but the situation is changing. This can be seen in the decline of the Bitcoin network’s hashrate, which measures the connected computing capacity. The Bitcoin hashrate has fallen by around eight percent since the start of the Iran war. The BTC hashrate also plummeted when the US bombed Iran in the summer of 2025. However, at its current level of around 939 EH/s, the value is still significantly higher than a year ago, and the security of the Bitcoin network is not compromised.

When the first images of bombings in Tehran circulated on February 28th, Bitcoin plummeted to nearly $60,000. However, it quickly recovered, and with prices currently around $70,000, Bitcoin is even performing stronger than at the start of the Iran war. In contrast, the price of gold has fallen by more than 5 percent in the three weeks of the war so far – once again sparking heated debate about whether Bitcoin could replace gold as a “safe haven” in times of crisis.

It has been observed that Bitcoin and other cryptocurrencies are increasingly being used to circumvent sanctions. Iran is excluded from the Western financial system, but cryptocurrencies allow for the transfer of large sums of money without the involvement of banks. This aspect already played an underestimated role in the Ukraine war, and according to a recent study, the use of cryptocurrencies, which the West considers illegitimate, has been increasing dramatically by state actors since 2024.

It remains uncertain whether the Iran war will last long and cause lasting disruption to the global economy

However, the risk of inflation is growing daily, Dubai and other emirates are off-limits as tourist destinations for the foreseeable future, and the US and EU are becoming increasingly estranged. This could create a highly dangerous mix of factors affecting financial and cryptocurrency markets and potentially triggering a crash.

While traditional exchanges handle the wild fluctuations in the commodity markets, traders are perhaps for the first time recognizing the appeal of blockchain solutions with their continuous availability. The decentralized cryptocurrency exchange Hyperliquid has been organizing more than $1 billion in daily trading volume in oil derivatives since the start of the Iran war and, according to analysts at JP Morgan, is already capturing market share that would otherwise be found on secondary exchanges around the world. In a 24/7 situation like the Iran-Iraq War and its aftermath, the cryptocurrency industry is demonstrating its typical strengths.

Conclusion: The Iran war is a test for Bitcoin and other cryptocurrencies

For three weeks now, the conflict in Iran and its oil-rich neighbors has been raging, triggered by the US and Israel – a classic Middle East powder keg.

The resulting disruptions to the global and financial economies could be drastic, and Bitcoin and the crypto industry are already feeling the effects. Bitcoin will have to prove whether its moniker “digital gold” is justified. Hyperliquid can already consider itself a winner in this crisis; speculation is always a factor.

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(Featured image by Dmytro Demidko via Unsplash)

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