🚨There is a high possibility of a war between India and Pakistan after India strikes military targets inside Pakistan . Here I summarized for you the impact of these events on the cryptocurrency market 👀
1. High demand for alternative assets
Safe havens such as gold and major cryptocurrencies such as bitcoin may see increased demand, especially from investors seeking to protect their capital from geopolitical fluctuations.
2. Sharp price fluctuations
In the event that the conflict escalates into a full-scale confrontation, the markets, including cryptocurrencies, may experience significant volatility due to uncertainty and increased hedging.
3. Effects on the rupee and the Pakistani rupee
The decline in the value of the Indian and Pakistani rupees is expected, which may prompt residents to resort to digital currencies as a means of saving value, which may increase the local use of stablecoins.
4. Regulatory restrictions and capital control
In cases of war, governments may impose restrictions on the transfer of funds, which may lead individuals to use cryptocurrencies to bypass these restrictions.
5. Negative psychological impact on the global market
Any nuclear escalation or a major clash may create a wave of panic in the global financial markets, which will negatively reflect on cryptocurrencies for a temporary period, before they recover by attracting investors looking for financial alternatives outside the traditional system.
