The founder of the analytical firm Crypto Pragmatist, Jack Nywald, believes that in the short term, any military action can have a positive impact on the bitcoin rate.
Recall that on February 24, the rate of the first cryptocurrency fell to $34,300 against the backdrop of a special operation by Russian troops in eastern Ukraine. Stock markets also reacted sharply lower. Analyst Jack Niewold presented charts of the stock market, which has experienced strong declines during the Vietnam War, the Persian Gulf and Afghanistan. Given the ongoing hostilities and Bitcoin’s increased sensitivity to index changes, the analyst suggested using historical stock market data to understand where the market will move.
According to the analyst, now is the best time to buy bitcoin. In the future, hostilities will only “play into the hands” of the first cryptocurrency, as central banks will print even more money, and this will only exacerbate inflation. In addition, US economic sanctions against Russia and other countries may “push” these states to adopt cryptocurrencies. Users will become even more convinced that bitcoin is an effective store of value when the banking infrastructure is unreliable. All these factors together will lead to the growth of bitcoin and the entire cryptocurrency market, Niwald believes. He added that if Russia starts using bitcoin to circumvent sanctions, other states may follow suit.
The analyst is confident that it is now worth investing in DeFi projects as well, as international stocks are volatile and precious metals continue to stagnate. Decentralized protocols independent of states can provide financial services to users regardless of their nationality. Warfare is never good for financial markets, Niwald said, but even here, there is an opportunity for traders to speculate in cryptocurrencies that needs to be exploited.
Another cryptocurrency analyst, Benjamin Cowen predicts a decline in the price of bitcoin. He believes that in the near future one should not expect a big rise in the cryptocurrency market.