Summary
- It reported that an analysis has been raised that Bitcoin (BTC) could benefit if the military conflict between the United States and Iran becomes prolonged.
- It said that if an expansion of US deficit spending to finance war costs coincides with a weakening US dollar and a preference for non-dollar assets, funds are likely to shift into Bitcoin.
- It said it projected that a favorable environment for Bitcoin could be created as financial stability and debt management are prioritized amid the Federal Reserve (Fed) maintaining a low-rate stance and concerns over stagflation.
Forecast Trend Report by Period
An analysis has been raised that Bitcoin (BTC) could benefit if the military conflict between the United States and Iran becomes prolonged.
According to CoinDesk, a US media outlet specializing in virtual assets (cryptocurrencies), on the 9th (local time), Mark Connors, CEO of Risk Dimensions and former global head of portfolio and risk advisory at Credit Suisse, said a prolonged war could create a favorable environment for Bitcoin.
Connors explained that if US deficit spending expands to finance war costs, market liquidity could increase and the US dollar could weaken.
He said, "When currency values decline, funds are highly likely to move into non-dollar assets—Bitcoin, which is scarce."
He also cited as a positive factor for Bitcoin the possibility that the Federal Reserve (Fed) may maintain a low-rate stance to stabilize the Treasury market.
He projected that despite stagflation concerns, an environment favorable to Bitcoin could be created as financial stability and debt management are prioritized.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
