How do geopolitical tensions affect Bitcoin price movements?
Geopolitical tensions often lead investors to seek alternative assets like Bitcoin. In times of war, sanctions, or political instability, Bitcoin is seen as a hedge against traditional financial risks. Capital flight from unstable economies can boost demand. However, global uncertainty can also make investors risk-averse, causing short-term price drops. Regulatory crackdowns during such times may also create fear. Overall, Bitcoin tends to benefit from long-term geopolitical instability but may face short-term volatility depending on investor sentiment and liquidity.