If World War 3 breaks out, will cryptocurrencies rise or fall?
In the event of World War 3, cryptocurrency prices could fluctuate wildly, depending on market reactions and geopolitical factors. Some possible scenarios:
1. Rising prices:
In a time of global uncertainty, many people may view cryptocurrencies (especially Bitcoin) as a safe haven asset, similar to gold.
If confidence in the traditional financial system or fiat currencies is shaken, demand for cryptocurrencies could increase sharply.
2. Falling prices:
Major conflicts could lead to disruptions in technological infrastructure, including the internet and energy, which are necessary for trading cryptocurrencies.
If investors withdraw capital from risky assets and move into cash or safer assets (like gold or bonds), cryptocurrency prices could fall.
3. Extreme volatility:
Cryptocurrencies are often very sensitive to global news and volatility. In times of uncertainty, the cryptocurrency market may witness sharp fluctuations in the short term.
However, it is difficult to predict accurately as cryptocurrency prices depend on investor behavior and policies implemented during the emergency.
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