#XSuperApp

📉 Wars and Digital Currencies: A Complex Relationship 📉

Wars and geopolitical conflicts cause violent fluctuations in the digital currency market. Here are the main effects:

Price drops and increased volatility: Fear and uncertainty drive investors to sell risky assets, leading to falling prices.

Safe haven (sometimes): In some areas, some may turn to digital currencies (especially Bitcoin) as a hedge against the collapse of local currencies or inflation.

Regulatory changes: Governments may impose strict restrictions and oversight on trading.

Indirect effects: Rising inflation due to wars may prompt central banks to raise interest rates, negatively impacting digital assets.

In summary: Wars mean instability for the digital currency market, with a general tendency to decline, but they may serve as a refuge for others under certain conditions.