Unlikely Allies for Cryptocurrency: Top Analysts Reveal War as a Surprising Bullish Force

Cryptocurrency analyst Cyclop has made a statement that could hold significant importance, claiming that the ongoing crisis between Israel and Iran may inadvertently boost the performance of digital assets.

Despite recent volatility in the cryptocurrency market, with sell-off amounts around $140 billion, Cyclop's long-term analysis indicates a more optimistic outlook for the entire digital asset industry.

Analysts Predict Bullish Trends for Cryptocurrency Amid Conflict

In a recent article on X (formerly known as Twitter), Cyclop pointed out that historical patterns suggest geopolitical tensions often lead to bullish trends in cryptocurrencies.

He cited specific examples from April and October 2024, noting that Bitcoin (BTC) initially experienced declines of 18% and 10% during these conflicts, but soon rebounded, rising by 28% and 62%, respectively.

The analyst explained that while such conflicts may trigger short-term bearish trends, the overall impact is often favorable for cryptocurrencies.

He stated that unlike traditional bank accounts, cryptocurrencies cannot be frozen, making them particularly attractive during periods of geopolitical turmoil. Digital currencies are increasingly seen as a form of “digital gold” and a safe haven during turbulent times.

Favorable Macroeconomic Factors

The current market dynamics resonate with past events such as the 2020 Russia-Ukraine conflict and U.S.-Iran tensions, which similarly resulted in brief market declines followed by recoveries. Although summer market activity typically sees a slowdown, Cyclop remains confident that the current situation will yield similar results.

Favorable macroeconomic factors underpin this bullish sentiment. Recent developments indicate that the U.S. and China have reached a compromise to lower tariffs and are committed to stabilizing global supply chains. This move is expected to help curb inflation and restore investor confidence.

Additionally, President Donald Trump's decision to postpone new tariffs has also contributed to creating a more favorable risk environment, allowing liquidity to flow back into the cryptocurrency market.