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What will happen to Bitcoin's price if the US-Iran war ends? Here are expert predictions
US President Donald Trump's statements that the war with Iran could soon end have raised optimism in the cryptocurrency markets, and analysts have begun evaluating the impact of a possible ceasefire on Bitcoin's price.
After recent conflicting statements from the White House, Trump's declaration that "the war will soon end" sparked a quick response in the markets. As of today, Bitcoin has risen to $68,594, with Ethereum and altcoins also showing growth.
Short-term reversal in crypto assets
According to market experts, a short-term reversal towards crypto assets may occur if geopolitical tension eases. Norman Wooding, CEO of SCRYPT, noted that with reduced tension, demand for safe-haven assets may shift toward traditional risky assets. However, it is noted that recent events in the Middle East have increased volatility in both cryptocurrency and traditional markets.
The role of geopolitics in Bitcoin's dynamics
James Butterfill, head of research at CoinShares, claims that geopolitical events have played a significant role in Bitcoin's dynamics in recent months. According to Butterfill, while Bitcoin still has the characteristics of a "risky asset," it has temporarily taken on the image of a "safe haven," surpassing stocks recently.
The impact of the peace process on crypto markets
However, analysts say that a potential peace process could spur a return to cryptocurrency markets in the short term. Still, it's important to note the changing investor profiles. Institutional investors, particularly pension funds and university funds, are reportedly sticking to a long-term strategy regarding cryptocurrency assets and are not changing their positions based on short-term geopolitical events.
The importance of oil prices for cryptocurrency markets
On the other hand, experts believe that oil prices remain a critical factor for the direction of cryptocurrency markets. The rise in energy prices after the war started has forced central banks to delay rate cuts, which has restricted liquidity in the markets. However, if the conflict subsides and oil prices fall, it could reduce inflationary pressure and set the stage for a more dovish monetary policy, creating a favorable environment for Bitcoin.
See also: "Peter Brandt names timeline for the end of Bitcoin’s bear cycle"
