US-Iran Military Action Underscores Crypto’s Market Power
Talik Evans
- 2 min read
Key Takeaways
- The U.S.–Iran strike exposed a gap in traditional finance, as global markets were closed while crypto traded uninterrupted.
- On-chain platforms like Hyperliquid and tokenized assets such as XAUT saw surging activity, becoming primary venues for price discovery.
- The event accelerated expectations that finance will move on-chain faster, pushing institutions to adapt to 24/7 crypto markets.
The recent U.S. military strike on Iran over the weekend heightened global geopolitical tensions and stirred anxiety among investors. But according to Matt Hougan, Chief Investment Officer at Bitwise, the episode also underscored the growing influence of cryptocurrency and always-on on-chain markets.
Crypto Markets Step In as Traditional Exchanges Close
When President Donald Trump announced the attack in the early hours of Sunday, major traditional markets around the world were closed. Stock exchanges, futures markets, forex trading desks, and major financial centres in Europe and Asia were offline, leaving investors with little ability to immediately price in the shock.
In contrast, blockchain-based markets continued trading around the clock. With crypto trading running 24/7, these markets became the primary venues for real-time price discovery while traditional infrastructure was paused. Hougan described this weekend as a moment when crypto-enabled markets filled a structural gap that traditional finance could not.
“In years past, if a major geopolitical shock hit on a Sunday morning, investors would wait until the U.S. futures markets opened at 6 p.m. ET on Sunday to find out what the impact would be. But as this weekend showed, they now have an alternative: They can turn to crypto-based rails, which trade 24/7/365, globally. And this weekend, they did.”
News outlets reported that Bitcoin (BTC) initially fell on the news before stabilising, and that on-chain finance drew significant attention during the episode.
Decentralised Platforms See Surge in Activity
Decentralised platforms were particularly active. On Hyperliquid – a decentralised exchange offering perpetual contracts linked to various assets – trading volumes surged over the weekend, and its native token saw strong performance.
Other tokenised assets also saw elevated activity: gold-backed token XAUT logged substantial 24-hour trading volume, and prediction markets like Polymarket recorded heavy usage. Hougan noted:
“Sunday’s attacks put the spotlight on markets that never close. Don’t expect traders to forget it. It was the first time I remember crypto-enabled markets being ‘the market,’ full stop.
He also stated:
“If you are a hedge fund, bank, or any other investor who wants to trade competitively, you no longer have a choice: You have to set up a stablecoin wallet and learn how to trade on Hyperliquid. You need to understand XAUT. You need to read about tokenized stocks. Because even if you don’t, everyone else will.
A Faster Shift Toward On-Chain Finance
The experience has shifted his expectations about how quickly traditional finance will integrate with blockchain systems. Whereas he previously thought this shift would unfold gradually over the next 5-10 years, Hougan said the episode convinced him it will happen much sooner.
Overall, the U.S.–Iran strikes have drawn attention not only to geopolitical risk but also to the role that continuous, blockchain-based financial markets can play when traditional markets are offline, and investors are taking notice.
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Talik Evans
Journalist and Financial Analyst
Talik Evans is a financial writer and crypto researcher with a growing focus on digital assets, Bitcoin markets, and blockchain innovation. Since 2021, she has been exploring the world of cryptocurrency, writing about everything from exchange comparisons to regulatory updates and security practices.