Results suggest that War attention significantly impacts cryptocurrencies, with shorter-term cryptocurrency investors responding by seeking liquidity. Previous papers examine the effects of geopolitical risk, political instability and political uncertainty on financial market performance.
How will the Israel war affect crypto?
How does the Ukraine war affect the crypto market?
Appiah-Otoo (2023), using a panel method with a sample of 20 countries from January 23, 2022 to April 16, 2022, found that the Russia-Ukraine war has affected the cryptocurrency market, especially Bitcoin exchange returns. The war caused Bitcoin trading volume to drop by 0.2%.
What happens to Bitcoin if war breaks out?
A global war would likely send the stock market into a tailspin, as investors would flee to safe haven assets like cash and gold. The crypto market is even more vulnerable to a global war. Cryptocurrencies are already highly volatile, and a war could send prices crashing.
Does war increase bitcoin price?
Case Study: Bitcoin During the Trade War Between the United States and China. The trade war between the United States and China that raged between 2018 and 2020 is an important case study of Bitcoin's reaction to geopolitical events. As trade tensions rose, Bitcoin saw moments of increased price volatility.
What happens to Bitcoin if nuclear war?
Bitcoin's decentralized blockchain structure makes it resistant to destruction and allows it to continue functioning even if a nuclear war occurs in a specific geographic region.