Measuring the Impact of Iran's Attack on Israel on Bitcoin and Other Cryptos
This condition is similar to what happened previously with Iran's missile attack on Israel on April 15, which caused Bitcoin, the most popular crypto asset, to fall by 8% to reach US$60,800.
However, we have to believe recovery in crypto assets will start to be seen.
Crypto assets are a class of assets that have no direct relationship or association with a particular country, government or organization.
So, in theory, the impact of geopolitical conflicts or even war on the crypto market tends to be minimal compared to other investment instruments.
Currently, adoption of crypto assets from non-retail circles such as countries and businesses is also increasing. The government agency managing Japanese pension funds, GPIF, for example, which is one of the largest pension fund management institutions, has begun exploring Bitcoin as an investment instrument.
In addition, the launch of the Bitcoin Exchange-Traded Fund (ETF) and Ethereum spot ETF have also become a catalyst for the increasing attention of traditional investors to crypto assets, especially in countries such as the US, Hong Kong and the UK.
The increasing recognition and legitimacy of Bitcoin and crypto assets in general is also a variable that can accelerate the recovery of crypto assets after correction due to the greater potential for market growth.
Regarding the potential for price increases, based on the Stock to Flow (S2F) indicator which compares the amount of assets stored and the amount produced each year, the price of Bitcoin is projected to appreciate significantly and be in the range of US$250,000 in February 2025, before rising to US$450,000 in May 2025.
While it does not guarantee future trends, the accuracy that the S2F indicator has shown so far makes it worth watching.
Source: Bisnis.com
