The magnetic field in magnetized iron is fundamentally linked to the movement of charged particles, specifically electrons. When electrons orbit the nucleus of an atom, their motion creates a current, which generates a magnetic field. This phenomenon can be understood through the simplified Bohr model of the atom, where charged particles contribute to the overall magnetic properties. The discussion emphasizes the relationship between electric current and magnetism, highlighting that the movement of electrons is crucial in producing the magnetic field. Understanding these concepts is essential for grasping the underlying basis of magnetism in materials like iron.