Yes, wars clearly affect the cryptocurrency market (crypto), but the impact varies depending on the type of war, its duration, and the nature of the global economy at that time. Here’s a simple and direct explanation:

🛑 1. State of Fear and Uncertainty (FUD)

When any war breaks out, the first reaction in the markets — whether traditional or digital — is fear. Investors flee from risky assets (like cryptocurrencies) and move toward safe havens (like gold and the dollar). The result? A temporary drop in crypto prices.

🟢 2. Shift to crypto as an alternative safe haven

In some cases, especially when the war is in countries suffering from economic collapse or international sanctions, people turn to crypto to escape inflation, sanctions, or the collapse of their local currency.