Bitcoin Quickly Drops 3.5% As Fresh Iran Escalation Short-circuits Crypto Rally

Bitcoin experienced a swift 3.5% decline following reports of an escalation in the U.S.-Iran conflict, abruptly reversing a rally that had been building across crypto markets. The selloff was consistent with broader risk-off behavior seen across equities and commodities during the same period. The event highlighted crypto's continued sensitivity to geopolitical shocks, particularly in the early stages of conflict escalation. Funding rates on perpetual futures turned negative briefly, indicating a surge in short-selling pressure, before stabilizing as markets digested the news. No fraud or manipulation indicators present. This is standard market reporting on price volatility driven by macroeconomic and geopolitical events.