When war occurs, the market certainly fluctuates, that's natural. Because many people panic or whatever. But that's usually only temporary after that the price returns to normal and will even be higher, bitcoin has gone through various crises and has proven to be able to survive.
When the Israel vs Iran war occurred, of course the crypto market experienced a decline because the crypto market is very sensitive to geopolitical news that causes uncertainty, including during war. Although we know that bitcoin is currently considered a hedge against inflation or an uncertain global economy. As an investor, especially a novice investor, fear must arise when geopolitics are uncertain, they panic selling it because this asset also has risks. So the impact of war on the market is definitely there, including crypto, but the market will usually recover after the war ends.
It is normal for the market to panic and bitcoin prices to drop when war breaks out. But did you know that only speculative assets, uncertain markets are sensitive to news or sell off when war breaks out or global instability occurs? That means bitcoin is neither the best and most effective inflation hedge, nor the safe haven in times of economic uncertainty that we think it is.
That is sad and shows that the world still sees it as just a speculative asset like the stock market. They don't consider it digital gold like they say.