{"id":161261,"date":"2025-06-28T18:30:58","date_gmt":"2025-06-28T15:30:58","guid":{"rendered":"https:\/\/cryptodnes.bg\/en\/?p=161261"},"modified":"2025-06-28T12:32:45","modified_gmt":"2025-06-28T09:32:45","slug":"history-shows-war-panic-selling-hurts-crypto-traders","status":"publish","type":"post","link":"https:\/\/cryptodnes.bg\/en\/history-shows-war-panic-selling-hurts-crypto-traders\/","title":{"rendered":"History Shows War Panic Selling Hurts Crypto Traders"},"content":{"rendered":"

According to data<\/a><\/strong> from blockchain analytics firm Santiment, fear-driven reactions to war headlines often create prime opportunities for large investors\u2014while retail traders get left behind.<\/p>\n

History Repeats in Global Crises<\/h2>\n

The crypto market saw a familiar pattern unfold over the past week. The U.S. launched airstrikes on three Iranian nuclear sites, heightening tensions across the Middle East. Iran fired missiles in retaliation. Fears of a wider war surged as U.S. embassies went on high alert and regional airspace closures spread. Yet despite this chaos, Bitcoin bounced back above $108,000 by June 25.<\/p>\n

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This rebound aligns with earlier cycles. In February 2022, Bitcoin initially plunged when the Russia-Ukraine war broke out\u2014only to rally days later. In October 2024, conflict between Israel and Palestine caused similar short-lived dips before a swift recovery. In each case, prices dropped when war dominated headlines, then rebounded once retail traders had exited in fear.<\/p>\n

Santiment\u2019s data shows crowd sentiment often peaks in fear just before markets rally. Mentions of \u201cwar\u201d and \u201cconflict\u201d surged as the U.S.\u2013Iran tension escalated. Meanwhile, social media showed a sharp rise in bearish price predictions for Bitcoin\u2014just before it rebounded by 10%.<\/p>\n

Panic Selling Benefits the Whales<\/h2>\n

Santiment\u2019s on-chain metrics indicate retail traders often overreact to geopolitical shocks, while whales quietly accumulate. On June 12, following Israel\u2019s initial strike on Iran, $335 million was liquidated across crypto markets in just one hour. By June 22, President Trump confirmed U.S. airstrikes on Iranian nuclear facilities, which spiked online mentions of \u201cIran\u201d\u2014but didn\u2019t lead to a major price collapse.<\/p>\n

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Instead, as smaller traders sold out, the market found support. Bitcoin began climbing just as the majority expected further declines. A ceasefire between Israel and Iran followed, offering a possible turning point. As seen in past events, these de-escalation moments often mark the start of a new bullish phase.<\/p>\n

Correlation With Stocks Adds Stability<\/h2>\n

Unlike past cycles, crypto now moves more closely with equities. Since early 2022, Bitcoin has trended in line with the S&P 500 and Nasdaq-100. This correlation means that broader market strength can provide support even during global crises.<\/p>\n

While war-related panic still triggers short-term volatility, macroeconomic conditions\u2014like inflation and stock performance\u2014now play a bigger role in crypto\u2019s direction. That\u2019s why Bitcoin\u2019s rebound has mirrored stock market resilience despite geopolitical headlines.<\/p>\n