Bitcoin typically experiences a short-term price decline following geopolitical conflicts, followed by a rebound within 50-60 days, with a historical average gain of 31.2%, as increased government spending and monetary expansion ultimately benefit Bitcoin. Recent events, such as the 2026 US-Iran conflict that triggered $358 million in liquidations, indicate that market dynamics are shifting. Institutional ETF inflows have provided some buffering effect on volatility, while Bitcoin's correlation with risk assets like the Nasdaq is also strengthening.