Analysts stated that the ongoing tensions in the Middle East could spread to the cryptocurrency market.
Different analysts discussed the possible effects of the developments in global markets on the cryptocurrency market. The general opinion of analysts who approach the issue from alternative perspectives is Israel – Palestine The war between the two countries could eventually negatively affect the cryptocurrency market.
In such war situations where macroeconomic conditions turn negative Risk products like Bitcoin It was noted that a decrease may be observed, albeit in the short term.
cryptocurrency platform of VDX research manager Greta Yuanongoing tensions in the Middle East are already oil And gold He stated that it had an impact on prices:
The global market is worried that the conflict will spread to nearby oil-producing countries, so investors are still relatively sensitive. As Middle East geopolitics worsened over the weekend and risk aversion increased in the market, spot gold rose nearly 1% and oil rose 4% as a result.
Chief operating officer of crypto exchange BTSE Jeff Mei, He compared the Israeli-Palestinian war to the Russia-Ukraine war, and shortly after the news of the war last year, Bitcoin’s price increased. Up to 7% decrease in 1 day He reminded me that he was alive. However, he emphasized that the anti-war sanctions imposed by the USA created a recovery in Bitcoin and traditional markets:
Currently, we have observed a temporary drop in the price of Bitcoin following the shocking news about the conflict, but the price has already stabilized. Crypto assets have demonstrated resilience in the face of increasing geopolitical turmoil in the past. For example, when the US imposed sanctions following Russia’s invasion of Ukraine, we saw a sharp rebound in Bitcoin and broa.
FxPro senior market analyst Alex Kuptsikevich whereas In case the war spreads and tension escalates your attention in energy prices He highlighted that it should be. Kuptsikevich wrote that increases in oil prices triggered selling pressure in stocks and this situation poses a risk for the cryptocurrency market:
Regarding macroeconomic impacts, we should keep our eyes on energy prices in case the risks of expansion and escalation of conflicts materialize. Rising oil prices are triggering a selloff in stocks and fueling expectations for tighter monetary policy. This is the key risk for assets like Bitcoin and the crypto market as a whole.