As global geopolitical tensions rise, Bitcoin is increasingly viewed as a hedge against conflict. The ongoing Israel-Gaza conflict and tensions involving Ukraine illustrate how such events impact financial markets, including cryptocurrencies. Historical evidence suggests that while Bitcoin may initially decline during geopolitical strife, it typically recovers and outperforms previous levels within about 50 days, showcasing its resilience. Experts note that in the early stages of conflict, cryptocurrencies may be deemed too risky and fail to attract investor interest. However, over time, inflationary pressures from conflicts can boost Bitcoin's attractiveness. Analysts emphasize the complex investor behavior surrounding different types of geopolitical risks—localized conflicts may encourage crypto investments, while global crises tend to dissuade. Overall, although Bitcoin is often seen as vulnerable in extreme circumstances, it appears to benefit in periods of heightened geopolitical conflict over the longer term, acting as a store of value against fiat currency debasement and inflation.

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