The behavior of BTC in times of war - Personal Opinion

josevas217 (79)modin Project HOPE • 9 hours ago

Hello friends of Project HOPE, I hope you are all well. Today I would like to talk about something that seems interesting to me, and it has to do with the behavior of Bitcoin in times of war, such as the recent increase in tensions. between Iran and Israel, generally tends to show a downward trend in the short term.

This occurs because, (in my opinion) being considered a risk asset, investors tend to opt for safer havens when global uncertainty increases. During times of crisis, fear and uncertainty lead many to sell their most volatile assets, such as BTC, seeking to protect their capital.

_Source

We have seen this pattern repeat itself on several occasions. With the rise of geopolitical tensions, such as the current conflict in the Middle East, Bitcoin has shown a significant correction in its price, similar to what occurs with other risk assets. In these scenarios, investors tend to move towards more stable assets, such as gold, which has traditionally been the safe haven par excellence in times of global instability. Gold tends to appreciate, while BTC and some important indices, such as the US30, decline in price.

However, when we look at the long term, the situation may change. As markets come to terms with the new normal or begin to anticipate the outcomes of conflicts, Bitcoin has the potential to regain ground, and even appreciate. Macro news often points to an increase in the price of BTC in the long term, based on factors such as its increasing adoption, its limited supply, and the possible decrease in confidence in traditional currencies due to inflation or ineffective monetary policies.

_Source

Furthermore, in an increasingly digital world, many see Bitcoin as an alternative store of value, especially in countries where local economies are severely affected by international conflicts or sanctions. This could boost its demand in certain specific markets.

But even though it may have some interesting setbacks in the short term, its ability to recover in the long term should not be underestimated. In these types of scenarios, volatility will always be a factor, and investors must be prepared to handle both declines and potential recoveries. While gold shines as an immediate safe haven, BTC remains an attractive option for those thinking about the digital future and long-term growth opportunities. I would like to know what you think about it, greetings.