Bitcoin typically exhibits a pattern of short-term price declines following geopolitical conflicts, followed by rebounds within 50-60 days, with historical average gains reaching 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, suggest that market dynamics are shifting. Institutional ETF capital inflows have provided some volatility buffer effects, while Bitcoin's correlation with risk assets like the Nasdaq has also been strengthening.