The effects of the war in the Middle East could spill over to the crypto markets and cause a short-term decline in riskier assets such as bitcoin , several traders who spoke to CoinDesk opined.
Futures traders betting on higher prices saw over $100 million in liquidations over a 24-hour period from Monday, as alternative currencies saw a sell-off. However, crypto markets are showing signs of early resilience that may instill confidence among bulls. In early 2022, military tensions between Russia and Ukraine saw bitcoin shed as much as 7% in a single day, displaying the significance and impact of geopolitical struggles on the niche asset class. At such times, typically, investors tend to flee to gold, while assets deemed riskier tend to see declines.
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