Prolonged US-Iran conflict could boost bitcoin growth, expert says
A prolonged conflict between the United States and Iran may support bitcoin’s price increase, according to Risk Dimensions macro strategist Mark Connors. He explains that wars typically lead to higher government spending and growing budget deficits, increasing dollar liquidity and weakening the currency. In such circumstances, investors tend to seek alternative assets more often.
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Connors points out that the US national debt is already growing at about 14% annually, and the combination of rising debt and potential Federal Reserve interest rate cuts historically creates a favourable macroeconomic environment for bitcoin. This dynamic could boost demand for the cryptocurrency amid economic uncertainty.
Therefore, further escalation in international tensions may continue to drive interest in bitcoin as a safe-haven asset.
