"Bitcoin (BTC) Could See Further Losses if US-Iran Tensions Escalate"
Summary
- An ActivTrades analyst said Bitcoin (BTC) could see further declines if tensions between the United States and Iran escalate.
- She said that as geopolitical risks increase, investors tend to avoid highly volatile assets, which could lead to additional downside for Bitcoin.
- She added that Bitcoin has upside only if inflation expectations rise due to a fall in oil prices, underscoring its appeal as a hedging instrument.
Forecast Trend Report by Period
Carolane De Palmas, an analyst at online broker ActivTrades, said Bitcoin (BTC) could fall further if tensions between the United States and Iran escalate.
According to Walter Bloomberg on the 3rd (local time), she noted the possibility of additional declines, saying that "as geopolitical risks rise, investors tend to shy away from highly volatile assets."
She added, however, that "Bitcoin has room to rise only if inflation expectations pick up again due to a decline in oil prices, thereby highlighting its appeal as a hedging instrument."
With tensions in the Middle East recently intensifying and volatility in global oil prices increasing, the digital asset (cryptocurrency) market is also becoming more sensitive to macro variables.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
