Summary
- An ActivTrades analyst said Bitcoin (BTC) could fall further if tensions between the U.S. and Iran escalate.
- She said that as geopolitical risks rise, investors tend to avoid highly volatile assets, raising the possibility of further declines.
- She added that Bitcoin has upside potential only if falling oil prices push inflation expectations higher again, highlighting its appeal as a hedging instrument.
Forecast Trend Report by Period
Carolane De Palmas, an analyst at online broker ActivTrades, said Bitcoin (BTC) could decline further if tensions between the U.S. and Iran escalate.
According to Walter Bloomberg on the 3rd (local time), she noted the risk of further losses, saying that "as geopolitical risks rise, investors tend to avoid highly volatile assets."
She added, however, that "Bitcoin has upside potential only if falling oil prices drive inflation expectations higher again, thereby highlighting its appeal as a hedging instrument."
With heightened tensions in the Middle East and increased volatility in international crude prices, the digital-asset (cryptocurrency) market is also becoming more sensitive to macro factors.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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