US President Donald Trump’s statements suggesting that the war with Iran could end soon have boosted optimism in the cryptocurrency markets, while analysts have begun to assess the impact of a possible ceasefire on the price of Bitcoin.
Following recent contradictory messages from the White House, Trump’s statement that “the war will end soon” triggered a swift reaction in the markets. As of today, Bitcoin has risen to $68,594, while Ethereum and altcoins have also seen increases.
According to market experts, a short-term reversal in crypto assets could be seen if geopolitical tensions ease. SCRYPT CEO Norman Wooding stated that with reduced tension, demand for safe-haven assets could shift to traditional risky assets. However, it is noted that recent developments in the Middle East have increased volatility in both crypto and traditional markets.
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CoinShares research head James Butterfill argued that geopolitical developments have played a significant role in Bitcoin’s performance in recent months. According to Butterfill, while Bitcoin still possesses “risky asset” characteristics, it has temporarily gained a “safe haven” perception by outperforming stocks recently.
However, analysts say that a potential peace process could support re-entry into the crypto markets in the short term. Nevertheless, a shift in investor profiles is noteworthy. Institutional investors, particularly pension funds and university funds, are reportedly taking a long-term view of crypto assets and not changing positions based on short-term geopolitical developments.
On the other hand, according to experts, oil prices remain a critical variable for the direction of cryptocurrency markets. Rising energy prices following the outbreak of the war have caused central banks to postpone interest rate cuts, limiting liquidity in the markets. However, if the conflict subsides and oil prices fall, it could reduce inflationary pressure and pave the way for looser monetary policies, creating a supportive environment for Bitcoin.
*This is not investment advice.
