📉 Increased volatility:
- Tension and uncertainty in the Middle East could make financial markets, including cryptocurrency markets, more unstable.
- Investors are looking for safe assets in the face of potential conflicts, and while some cryptocurrencies tend to gain value as a “safe haven” in times of crisis, others may decline due to risk aversion.
💵 Demand for “safe haven assets”:
- Traditionally, gold and other safe-haven investments tend to increase in value in such contexts. In the case of cryptocurrencies, Bitcoin is often seen as a digital “safe haven asset,” and its demand could rise.
🌐 Impact on the global economy:
- Cryptocurrencies are global, and any event that affects the world economy can impact them. The possibility of conflicts in the Middle East interfering in oil and energy markets also plays a role, as it can trigger inflation, impacting both traditional markets and cryptocurrencies.
🚀 Investor interest in decentralized alternatives:
- The possibility of sanctions or limitations in the conventional financial system may lead some people to seek cryptocurrencies as an alternative, given their decentralized nature and ability to operate outside the traditional banking system.
