Israeli-Palestinian Conflict, Does It Have An Impact On The Crypto Market? Here's The Explanation

Photo: Bitcoin illustration (photo: Unsplash)

JAKARTA - Bitcoin (BTC) prices are known to have fallen below 27,000 (Rp 424 million) amid growing concerns about the Israeli - Palestinian conflict and the release of the latest United States inflation data.

According to Tokocrypto Trader, Fyqieh Fachrur, so far the conflict has not had a significant impact on the crypto market. However, if this conflict increases, it could result in increased price sensitivity.

"Global market concerns focus on potential conflict expansion to nearby oil-producing countries, thus keeping investors vigilant. This uncertainty has affected the crypto market, causing a decline due to soaring oil prices and concerns over international trade," Fyqieh said in a statement received in Jakarta, Sunday, October 15.

However, Fyqieh estimates there is still a glimmer of hope for Bitcoin, given Bitcoin that has successfully passed previous geopolitical shocks, such as the impact of sanctions imposed by the United States following Russia's invasion of Ukraine in early 2023.

According to him, in the long term, crypto assets may play an increasingly important role in providing investors with choices during the geopolitical turmoil.

Although the crypto market is known for its natural volatility, the market also shows a strong tendency to recover quickly after the instability period.

Fyqieh explained that the decentralized structure of crypto assets is one possible explanation for its resilience.

"Crypto is not like traditional assets that are tied to certain governments or institutions, operating on decentralized networks, making them less vulnerable to the direct impact of geopolitical events," he concluded.