The recent Middle East incident has sent a shockwave throughout the crypto space, Pushing below $100,000. Just recently, the U.S. reportedly launched an airstrike on Iranian nuclear sites, causing fear in a wider conflict. In response to this, Iran reportedly launched 14 missiles, targeting U.S. bases in Qatar. Although 13 of them were intercepted, one was set free because it was headed in a nonthreatening direction. These sudden military moves caused panic across the crypto space as other major assets followed in Bitcoins step with a sharp sell.
However , just as fear gripped the market, U.S. President Donald Trump announced a ceasefire between Israel and Iran. This unexpected news changed the market sentiment as bitcoin bounced back to $105,000. This has shown just how fragile the crypto market can be when politics come into play.
Mining Hashrate Takes a Hit Amid Conflict
Parallel to price movements, the Bitcoin’s mining network wasn’t spared either. Bitcoin’s hashrate, the total computing power securing the network fell 20% within days, dropping from 943 EH/s to about 754 EH/s. This sudden event caused a lot of speculation in the crypto community.
This is mainly because Iran is Bitcoin mining hub legalized in 2019, relies heavily on cheap electricity from fossil fuels and nuclear power. Many mining facilities are clustered near energy infrastructure that was likely damaged or disrupted during the U.S. airstrikes. Meanwhile there were reports of blackouts and internet outages in Iran during this period supporting the theory that miners were forced offline.
While it’s unclear if rattling Bitcoin mining was a direct military objective, the impact cant be denied. The decline in hashrate suggests miners in Iran were offline due to power or network issues.
However, History shows that Bitcoin’s network can self-correct: if miners drop out, the mining difficulty adjusts to keep transaction processing stable.
Cyberattacks, Allegations, and Iran’s Crypto Reserves
The conflit goes beyond physical strikes to cyber warfare. Just days before the airstrike, the largest Iranian crypto exchange Nobitex was hacked by a group suspected to be linked to Israel. The attackers stole $90 million worth of crypto but did not cash out; instead, they sent funds to unrecoverable “burn” wallets, crippling Iran’s digital assets.
This incident dueled rumors that Iran was selling Bitcoin to finance missiles and nuclear programs, with commentators like Mike Alfred calling for boycotts until Iran stopped selling crypto. However, evidence showed the stolen crypto was destroyed, not sold, delivering a blow to Iran rather than providing funds.
Bitcoin Surges After Trump’s Ceasefire Announcement
While all this happened, the market continued to sell off, pushing Bitcoin down to its lowest point in 45 days at $98,500. But then, the mood shifted dramatically after U.S. President Donald Trump announced a ceasefire between Israel and Iran.
He also described Iran’s missile response as “very weak,” in an X post, with most missiles intercepted and no American casualties reported. At the same time he thanked Iran for providing early warning, which helped avoid injuries and damage, and called on both nations to pursue peace.
This unexpected news brought immediate relief to investors shaken by the recent military escalation. Bitcoin swiftly rebounded to over $105,000, regaining crucial ground and restoring confidence.
At the time of writing, Bitcoin is trading at $105,285, a 4% increase in the last 24 H with a total market cap of $2.09T
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