President Donald Trump has pulled the United States into military action against Iran, and the first consequence for crypto markets was another wave of selling rather than a rush into Bitcoin as a haven.

According to CryptoSlate’s data, BTC price dumped around 7%, erasing some of its weeklong gains to trade as low as $63,000 before recovering slightly.

This price action negates the popular argument that geopolitical turmoil should automatically favor Bitcoin because it exists outside the traditional financial system.

In practice, the flagship crypto usually trades first as a volatile risk asset during a macro shock, especially when investors are already cautious, leverage is elevated, or portfolio managers are trying to raise cash…