Several global news outlets are pointing to this Saturday as a likely date for a strike on Iran. So what does a trader do with that kind of foresight? If war kicks off tomorrow, how does Bitcoin react?
Here's my take. The media says it could drag on for weeks. A prolonged campaign would choke off oil exports through the Strait of Hormuz—that's 25% of global supply. Plus, Iran could hit Saudi fields. And Riyadh signed off on the operation. Oil spikes? That's a death sentence for the global economy. Any progress on inflation gets wiped out. Forget about rate cuts from central banks or the Fed.
Still, Bitcoin could actually rip higher—we've seen it before in Middle East conflicts. But $90K is where the rally stalls. Institutional money is fleeing BTC ETFs—fund outflows have been red for a month straight. With liquidity drying up, bears could carve right through that wide support zone from $65K down to $60K. If the operation drags on? Then we're looking at $50K Bitcoin.
My plan is simple—I'll start buying at $60K and keep adding every time we dip below. That's the mining cost floor. Crossing it has always signaled the end of a crypto winter.
I'm not sure that Bitcoin will be chosen as an asset for preserving value in the current situation, after its 50% drop from its peak. Most likely, gold will once again become the asset of choice for minimizing risk. But I do agree that a blow to the totalitarian regime of the ayatollahs will be accompanied by cowardly revenge, and the blows will not be directed at the main enemy (there are no resources for this), but will be classic terrorist attacks on weak and unprotected neighboring countries, which could lead, for example, to temporary disruptions in oil supplies from the region.
Of course, it would be ideal if the Iranian tyranny fell without war, and the people of Iran gained freedom and the right to live freely and securely, being a full participant in the world market and profiting from resources belonging to the PEOPLE of Iran, not a handful of crazed murderers.
The bottom line is that it is unlikely to be possible to make money on Bitcoin in this situation, but it seems possible to do so on bets: "A trader who previously made $278,000 betting on Israeli strikes against Iran has opened new positions on possible US intervention.
He bet $24,000 on a scenario by the end of this month and $40,000 by the end of next month.
In the event of an escalation, the potential profit could be around $240,000."