How Can War Benefit Bitcoin Price?

Analyst Jack Niewold said on Friday that “war could be good” for bitcoin price. Britain has welcomed Russia’s invasion of Ukraine as a buying opportunity for long-term investors.

Niewold (24) is a Crypto Pragmatist founder aiming to offer institutional-level altcoin research to retail investors, citing “market bottoms” to back his argument.

“I haven’t tried to predict the bottom of a pullback until now, but I’m a buyer here,” he said after BTC price fell more than 9% to $34,700 on Thursday’s attack.

Place buy orders on invasion?

Niewold argues:

“Historically, gunshots have signaled a market bottom.”

He took charts from previous war periods, including the Synthetic Team War (1964), the Gulf War (1991), and the Afghan War (2001), to show the intended correlation between bitcoin and bitcoin with the US stock market – specifically Nasdaq.

History “shows that market bottoms coincide with war,” he said.

“So when Nasdaq and BTC are correlated, it is possible to use historical stock market data to understand where the market is going. This data (chart below) assumes Ukraine will be the only country under attack… but buying during an invasion appears to be a strong investment strategy,” Niewold said. tweet.

Source: Jack Newold

“War is good for cryptocurrency prices”

However, in his thread, he argued that “the Russo-Ukrainian war could be good for crypto prices.”

Niewold said war could cause central banks to print more money and cause inflation, while economic sanctions (like the US and European Union sanctions on Russia) could also spur countries to accept cryptocurrencies.

In times of war, migrants are more likely to turn to bitcoin “as a store of value and financial conduit when banking infrastructure is unreliable.” All of these factors combine to push the price of the cryptocurrency higher.

“I think there’s an interesting geopolitical game theory surrounding crypto adoption: if Russia starts accepting bitcoin to avoid sanctions, then I see other big countries need to adopt as well.

Niewold spoke about how bullish he is on DeFi as well:

“…If US hegemony is the problem, international stock markets are volatile, precious metals continue to stagnate, what do you invest in?

Decentralized protocols not affiliated with any country can accommodate financial services regardless of nationality. One notable difference I’m seeing in this cycle is that nobody is really leaving crypto forever, we’re just waiting for some kind of confirmation/certainty to come back.”

At the age of 24, the analyst insists he’s not a fan of the war and believes that a third world war “won’t be good for financial markets…but you can speculate on these events and study how they affect financial markets.” “.

Has Bitcoin Bottomed Yet?

Celsius Network CEO Alex Mashinsky is bullish on Bitcoin despite a rapid drop below $35,000 amid escalating hostilities.

In an interview with Kitco News, the head of the crypto lending platform identify Bitcoin has likely found strong support around the $30,000 price level and is currently on an uptrend.

“Yes, I think this is the low point for the Russian-Ukrainian conflict. BTC has very strong support at $30,000… price will hold current levels and move higher.”

Mashinsky also said Bitcoin is likely to surge higher after unleashing excessive leverage in the market due to Russia’s tough stance on Ukraine.

“Anyone using leverage is sold out. All traders looking for bad news have sold. The cryptocurrency market is currently not as leveraged as one might think. When these people sell, only buyers are left, and then the price will go up.”

Mashinsky also highlighted Bitcoin’s fundamental characteristics, saying that BTC’s demonstrable scarcity will eventually propel its value to greater heights.

“The reality is that BTC limits supply: there will never be more than 21 million bitcoins. The growing demand is basically saying that the price of bitcoin will go up over a long period of time… the price of bitcoin will go up as more and more people use it.”

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