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Bitcoin Fails Safe-Haven Test During Middle East Conflict as Gold Surges

Recent Israeli airstrikes on Iranian nuclear facilities exposed divergent market behaviors between Bitcoin and traditional safe havens, reinforcing Bitcoin’s risk-asset classification. While gold prices surged over 2% to $3,427.90 per ounce amid geopolitical instability, Bitcoin fell 3.6% to $103,900.

Analysts emphasized Bitcoin’s decline initiated before heightened Middle East tensions, reflecting typical market consolidation rather than geopolitical reaction. In contrast, gold attracted risk-averse capital during the conflict, highlighting its established defensive appeal.

The market turbulence triggered over $1 billion in liquidations across altcoins including Ethereum, XRP, and Solana. Concurrently, investors shifted allocations toward traditional safe havens like the U.S. dollar and government bonds.

Market data confirms Bitcoin’s continued correlation with technology stocks and broad risk sentiment, diverging from gold’s crisis-resistant trajectory. Experts caution that further regional escalation could push Bitcoin below $100,000, evidenced by declining sentiment in the Crypto Fear and Greed Index.

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