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 clarification:

🛑 1. The 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 head towards safe havens (like gold and the dollar). The result? A temporary drop in crypto prices.

🟢 2. The shift to crypto as an alternative haven

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