Bitcoin's been holding up pretty well recently, but if the conflict between the US and Iran drags on along with other global powers getting involved it’s bound to hit Bitcoin’s price. Right now, we’re already seeing a dip; Bitcoin was at $71,000 yesterday and has slipped to around $68,000 today. If this crisis continues, we could see further declines, so all investors should brace themselves for what’s ahead until things settle down in the Middle East.
Bitcoin, like every other cryptocurrency, is a volatile asset that is significantly affected by major world events, so when things like recessions or wars break out, investors tend to flee to "safe-haven" assets like gold or silver to protect their capital from getting devalued.
We will probably see a positive trend for Bitcoin once the situation in Iran has calmed down.
Bitcoin did not fall in price because of the war, bitcoin is just following its own trend, and it is the technical part of speculation that it is following. Just make use of the bitcoin chart for you to understand what I mean. If bitcoin price fall more, know that it is not about the war. We are in bear market is a reason.
Currently there is no sign that bitcoin is affected by this war because the economic cycle is still running quite safely, as long as the Gulf of Hormuz is not blocked by Iran the economic situation is still safe, so you don't need to worry but if they blockade the route then there will be a serious shock to the supply chain of oil, food and other trade that uses the gulf as a trade transportation route, several countries that import from the Middle East and rely on the gulf they will lack their needs and this will certainly shake the economy which will certainly also affect the price of bitcoin if left alone.
Even with the war tension on ground, bitcoin price have not shown so much concern and dependence on the news for it movement lately, when the price recovered recently touching 73,000 BTC the war was on and that could not stop bitcoin from achieving that recovery price, so for that we can say that bitcoin is an independent asset and not many time it price follows mainstream media or war in particular region.
It certainly will and just as it has been traditionally, there will still be a plummet and upsurge once things stabilizes in the Middle East and the war calmed
Okay, that's beautiful to see that Bitcoin is doing even this well in a bear market. So technically speaking, does it mean that the news from the war cannot contribute to down trends or bear season?
This is one of the reasons we are praying the war should be brought to a halt or an end put to it and peace given a place to avoid further or ripple effects that will come from the above mentioned blockade knowing the importance of that gulf to international trade and the world economy. So technically speaking, if there is persistence then it will surely affect the price of Bitcoin just as you acknowledge above.
I think the reason why it may seem not to follow mainstream media or news for now is because it hasn't really taken a deep economic effect on international trades and economies. If the war persists and there's a breakout of news of it's effect on markets and trades, it will surely find it's way to affect all assets be they physical or digital and I believe and technically speaking that Bitcoin isn't exempted. Although Bitcoin has the ability to still recover faster, we pray the war shouldn't persist.
From the look of things, the war is not contributing to the downtrend if bitcoin can first fall to $63000 when the war started, but start to increase and increase above $70000 to $74000 after the war has started. The problem that people have is that they prefer to link bitcoin price to anything that is happening presently, but I do not see how the war has effect on bitcoin price than when the war started, bitcoin fall has usual and increase back as usual.
From what we are witnessing in this period of this war in the Middle East, I think we can now learn and understand that most of the linking of price fall or downtrends of Bitcoin to wars and mainstream medias may truly have no effect on Bitcoin. I think it's time we begin to debunk things that isn't true. And I think most times, it is always market manipulations that causes some of the downtrends and not really any global happenings.
How can Bitcoin be considered an independent asset when its price depend on and is determined by cash flow, global liquidity, and investor sentiment? And did you know? Those factors are directly influenced by macroeconomic and geopolitical factor.
Meanwhile, the ongoing conflict in the Middle East is having a significant impact on the global economy, as it has caused oil prices to rise by 35% in just one week. Bitcoin is only a small part of the global economy, so it would be inaccurate to say that it is an independent asset
We cannot certainly write off the effect of the war on the price of Bitcoin. Just as all other assets, it is affected by political and economic decisions by major economies. Bitcoin declined in price during initial strikes but it later recovered after few days. The price recovered so much that analysts began to speculate that Bitcoin is showing that it's a safe haven asset. Since we are already in the bear market, the price will show some decline even without geopolitical conflict.
It should be emphasized that Bitcoin's price is not only influenced by major events such as war, but its value can also be influenced by several other factors such as market sentiment, regulatory policies, and technological innovation. Previously, Bitcoin also experienced a sharp decline even though there was no war, but geopolitical tensions in the Middle East could influence investors' perspectives to shift to other, safer assets. In situations like this, investors need to be prepared for Bitcoin price volatility, such as determining investment targets and exit strategies before investing, monitoring developments in the Middle East, and being ready to make decisions if necessary.
There may be an impact for now, but I think the war is not the main reason Bitcoin has not been able to end the bearish market. We already entered a downturn at the end of last year, and until now we are still in a bearish market. The brief increase that occurred is not a surprise. We have seen it happen several times after a decline from the ATH occurred. Some even speculate that the price could drop further, and the likelihood of that happening is also quite high.
This war could affect the Bitcoin market if it eventually escalates on a larger scale and lasts longer. But for the current situation, there may not be much impact yet.
Immediately I saw what was said about Bitcoin being an independent asset, I smiled.I know that there's no way Bitcoin can be an asset on it's own that does not depend on the international market and trade. Bitcoin is tradable and it's greatly adapted worldwide and it has from beginning follow market trends and speculations. I've never seen any global asset that is independent and I'm sure Bitcoin isn't so it is possible for the war to cause a price drop.
I think the decline that is happening is still quite normal at this time. Previously, Bitcoin dropped to $65k, then rose almost to $74k. So the current decline around the $67k price range is still acceptable under normal market conditions. It might also continue to drop, but I am not sure that this usual decline is a result of the war happening in the Middle East.
We really need to be prepared for all possibilities. After all, war can affect the global market, but at the moment, what seems to be most affected is related to oil.
War isn't the only major factor affecting Bitcoin, it may have been initially, but over time, many other factors have been taken into consideration that could influence Bitcoin's price. Furthermore, prior to this, many had predicted that market conditions would be less positive, and that we might see a further drop in Bitcoin's price. Therefore, it's plausible to assume that the decline wasn't solely due to war, but rather a combination of factors affecting the market.
I remember last time I think it was the Russian and Ukraine war where the market price of Bitcoin actually drop because of the war, but on these recent war of Iran I dont really see any kind of movement on Bitcoin in fact I think it might be a reason for Bitcoin to pump since in terms of war there are some resources that get destroy like what Iran is doing destroying the oil deposits nearby, In my here in my country even though it was far from the war gas prices was already increase dramaticaly, it was already +10% on it's price per liter. There was a sudden news of Bitcoin when it dropped in the bear market, but the war doesnt seem to affect the market price.
But I think people might find an asset like Bitcoin in times of war like this because there will be a lot of inflation in wars because government for sure are going to burn a lot of funds because they are using resources in the war, they gonna keep on printing money because they needed the founds, and the result of that is going to be a huge inflation, so investors or people are going to put there money on assets like Gold or Bitcoin in order to protect it, So right now I think the war might be a good news for the prices of Bitcoin and can actually help to bring it back, in fact I think war was one of the reason why it easily came back to 74k$.
Those factors are results of the war.
Like for now, there will be more financial institutions that will start to halt the withdrawals of their investors money.
They see it coming and that's why the volume that's coming from them might contribute to the price drop of Bitcoin because people will sell who owns a lot.
And those who are scared to face the impact of this will start piling up their cash for the preparation of the possible worse outcome of this war.