The unlikely ally of cryptocurrencies: a prominent analyst reveals that war is a surprising bullish force
Cryptocurrency analyst Cyclop has made a potentially significant statement, claiming that the current crisis between Israel and Iran may inadvertently boost the performance of digital assets.
Despite the recent volatility, which triggered a massive sell-off of approximately $140 billion in the cryptocurrency market, Cyclop's long-term analysis reveals a more optimistic outlook for the digital asset industry as a whole.
An analyst predicts bullish trends for cryptocurrencies amid conflicts.
In a recent post on X (formerly Twitter), Cyclop pointed out historical patterns suggesting that geopolitical tensions often lead to bullish trends in cryptocurrencies.
Citing specific examples from April and October 2024, he noted that Bitcoin (BTC) experienced an initial drop of 18% and 10% respectively during these conflicts, only to recover with impressive gains of 28% and 62% shortly thereafter.
This trend, he argues, indicates a recurring cycle where declines in cryptocurrency prices related to war eventually transform into significant growth, as can be represented in the chart below shared by Cyclop.
The analyst explains that while such conflicts may trigger short-term bearish movements, the overall impact tends to be favorable for cryptocurrencies.
