If the conflict between the United States and Iran prolongs, Bitcoin could stand to benefit significantly. Recently, more market participants are reconsidering the relationship between such geopolitical risks and cryptocurrencies.

Why does this happen? Low interest rate policies are originally measures where central banks keep interest rates low to stimulate the economy. However, if conflicts persist, countries tend to increase defense spending, which can lead to rising inflation pressures. This creates a situation that is incompatible with low interest rate policies.

From an investor’s perspective, in such uncertain times, demand for non-correlated assets like Bitcoin tends to increase compared to traditional assets. In fact, during past conflicts, Bitcoin has played the role of a safe asset.

Furthermore, it’s important to note that, contrary to low interest rate policies, in emergencies, countries tend to supply liquidity, which increases the money supply. As a result, investors concerned about currency devaluation shift toward Bitcoin. Such movements could also impact overall market liquidity.

Personally, I believe that depending on future developments, Bitcoin’s value proposition could become even clearer. The more situations test the limits of low interest rate policies, the stronger Bitcoin’s position as an alternative asset will become. It looks like we’ll be watching closely to see how the market reacts.