How does war influence Bitcoin prices

It's pretty crazy how the price of Bitcoin gets hit every time there's a war between major countries. Like, it makes me curious why conflicts seem to drag Bitcoin down. Take the recent Israel-Iran clash, for example Bitcoin took a nosedive during those 12 days, but once they announced a ceasefire, prices bounced back. What do you guys think about this?

Panic seller exist everywhere including in crypto. There's always certain group of people who short bitcoin when the news first appear hoping it'd make them some money and there are people who just easily get swayed by news and press the sell button the first second they heard bad news. It's normal, though.

I posted something about this recently which I think you can read about it https://bitcointalk.org/index.php?topic=5547768.msg65516132#msg65516132 I am not afraid of war because I know the price of bitcoin will still rise and it happened. The reason I think bitcoin price will fall a little would be bear market and the bear season will be over, making bitcoin get to all time high again and again.

Investor sentiment and panic will always have impact in the market. However, no event can affect bitcoin price permanently because bitcoin will always maintain her nature. A dip in price is a norm and it's always temporary because bitcoin price will bounce back. I believe that those who panic and sell during the dip are not planning to be long-term investors. Bitcoin has proven several times that no event can stop the price from pumping because more people are adopting bitcoin and fiat depreciates overtime.

My opinion on this is simple: Bitcoin was misjudged as a safe-haven asset, but the reality is now showing us the truth, it's a risk-appetite asset. For this, we should not be surprised, going forward, that Bitcoin will always fall when there are wars and uncertainties in the world and have a better chance to rise when there is peace and certainty. However, one thing is also certain, the Bitcoin community is large and diehard, so it can still use the opportunity to reduce the effect of the fall during war, and even shift the narrative or try to do so, which makes Bitcoin unique.

During wartime, it's hard to maintain a normal frame of mind. You can't be having your country falling apart and not have the economy get affected too and as such, even the little you have to keep as savings in Bitcoin ends up being used. When a state or nation is at war, the faith ones has in the currency drops, investors panic and inorder not to lose, they hurriedly sell of their Bitcoin to at least get something and I will not blame them but they forget that Bitcoin is like a cactus. No matter how dry the desert is, it still finds a way to survive.  No doubt that wars or smoke of wars can affect the price of Bitcoin, causing it to fluctuate but that isn't something new because at the end, it still rises back up. For me it's like, when there is a dip, it's like a test to see who are the strong hands and as soon as the weak hands sells off their coins, you'd see a price increase and those who were impatient would begin to regret.

I don’t get why people are usually surprised by the price action or dip of bitcoin during periods like War, bitcoin is heavily influenced by the demand and supply coming from its investors and during periods like the war period it is logical that there will be more panic concerning the direction of the economy of the world, this will lead to investors going to sell off some of their assets and the first ones are usually the volatile ones which bitcoin is one of them. The reality is bitcoin will be affected once the economy is actually affected because it is tied to demand and supply, but unlike fiat currencies that can lose their value it doesn’t that’s why after every drop we usually see it back up and this is why long term investment is the best form way to maximize profits with bitcoin

These questions I have often encountered, ok the answer is because the attitude of investors is different, simply put, war will cause panic and then they sell some or all of their assets for fear of loss, the dominant selling flow rather than buying in this short time has caused a decline in the last few days of bitcoin but the past has answered that even though there is a decline in the price of bitcoin it will return. You have to look at the history of bitcoin so that you stay on the right track.

This event, and events like it, don't effect the market for long - they only can do so little as to spuff the potential off, and make investors think that oil and other things will get very very expensive - thus, they start to pull off from what they can, and it comes to crypto to, eventually. But these events can't control the rally and overall picture forever.. Especially BTC.

It is because of panic, where holders will get a sense of insecurity, therefore liquidity will be taken from the market and will move to something safer in the market, such as gold or currencies that they believe can withstand military conflict. That activity will mostly be done by short-term traders, they easily panic and riot when they get the latest news, and sometimes it is a trap for them, where the news can be manipulated by the whales who control the market. Judging from the response because of the involvement of the US in carrying out the attack and it usually happens if a big country has a conflict it will have a bad impact on the market, the market recovered because there was an attempt at a ceasefire that made many people optimistic about Bitcoin again, but in the long term bitcoin will return and again set a historical record.

The major conflict experienced by the two countries as you said has triggered panic among some Bitcoin holders so it is very natural that Bitcoin price experienced a decline for a few days before turning back to $108K again. This means that a war on a large scale can always have an impact on the market and also on assets that have been favored by many people, for example Bitcoin. So you have to understand this more wisely because what happened to Bitcoin in the past few days is a very natural thing.

Who doesn't panic about war, even though they don't feel the impact of war but the economic fear is what they worry about including the impact on the crypto market where prices usually fall after a ceasefire the price recovers as is happening now after the ceasefire. Behind that there are investors who panic so they sell it faster... there are also those who create negative narratives that direct to bitcoin so that market sentiment is easily influenced, for us this is natural because the fear of this war will continue for a long time and prices continue to fall so they are better off selling faster than continuing to fall. some investors may have thought like they can't stand news like this.

Because panic should not need to happen because Bitcoin is different from other assets, especially physical assets. When a war happens, what panic means is that people sell it and it goes down according to the law of supply and demand. For this war and the previous war, the Bitcoin market did not have a big impact. The increase after experiencing a decline in my opinion is because people or investors are increasingly aware of the function of Bitcoin if they use it as a long-term investment asset — it is not complicated to store where.

These days any conflict between two countries is not limited to just two of them but it effects the whole world. For instance, recent conflict between Iran and Israel affected the whole world because oil prices start going up which in turn give rise to inflation. Bitcoin price does not move in isolation but is affected by global events like war's between countries. The main reason why Bitcoin goes down during war is because people with weak nerves cash out their Bitcoins because of panic while genuine investors buy those Bitcoin at discounted rates.

There are so many factors that influence the price of Bitcoin, from market sentiment, government regulation, and political ambitions etc. The war itself does not have a direct influence on Bitcoin especially if it occurs in regions where we have less Bitcoiners or a country where Bitcoin has restrictions. The main reason why we see Bitcoin been affected by the recent wars is because Trump policies, news/announcement has been affecting Bitcoin, his interest in the war too cause the influence. But how sure are we that the current war has an affect on Bitcoin?

its not just the Bitcoin market, war affects all markets and thats because of human sentiment. There will generally be a shift in finance, some people moving funds, paying off debt, taking out more debt and all sorts of financial movements for fear of the worst case scenario. You would think that the Bitcoin market would see a bit of an influx of funds transfer by people looking for a bit of a safe haven in troubled times but not everyone thinks like that or thinks the opposite.

I think you're expressing feelings and generalizing. That's your point of view, but if you check, it's not always like that. You can search for the first days of the UCR-RUS war, and the price remained in line with its organic volatility. The pandemic was the same; it wasn't a war as such, but its effect has been even worse for the global economy, and Bitcoin held up for quite some time. (The subsequent effects that are reflected over time are another analysis that moves away from the immediate effect called DT) Now, the media impact of DT is perhaps the main factor. Its volatility (coincidence of terms) means that in a way it produces an immediate effect. But surely, even if "peace" hadn't been established as a criterion, we would already be in a stable range, or Bitcoin's characteristic volatility. In any case, and regardless of the external agent and the individuals involved, Bitcoin will increasingly be affected by traditional agents, as is the case with traditional investments. This is the collateral that the adoption of traditional institutions brings us.

Simply put, war causes global instability, affecting every industry and sector in the economy and bitcoin is just a small part of this world. It's no surprise that it was affected, what surprised people was that bitcoin fell instead of rising like gold when the war broke out. Because in theory bitcoin is a great asset and can be used as a safe haven but unfortunately the world has not recognized that yet. They just see it as a risky asset, and that's why it dumped instead of rallying when the war broke out.

I agree with this, some take it as a buy signal where Bitcoin price dumps too hard, and that's the time some people are taking that opportunity to accumulate cheap Bitcoins. And after that, we see pumps, so for me, we must not panic at all for these. Consider also some people or entities spreading fake news just to manipulate the market and make money.

Yeah, even if there are big short position opened, eventually they'll take profit and they will rebuy the BTC to fulfill contract. Buying at dip is the best strategy there is for now, I can't count on how many dips BTC have experienced in Q1 from Q2 alone that could be life changing money if taken advantage properly. All of them always recovers at the end and the dips buyers are at profit.