Impact of Wars on Cryptocurrency

Wars and geopolitical conflicts drive short-term volatility in crypto markets, acting as "risk-off" triggers that prompt sell-offs to safer assets like fiat or gold. While Bitcoin is sometimes seen as "digital gold" against inflation or sanctions,

Key examples:

Russia-Ukraine War (2022–2025): Escalations cause immediate price drops and heightened volatility; e.g., a June 2025 flare-up saw Bitcoin fall 4.5% to $104,343 and Ethereum 8.2% to $2,552 in 24 hours. Crypto aids sanctions evasion via privacy coins/stablecoins but correlates with higher risk indices, failing as an effective hedge.

Israel-Hamas/Middle East Tensions (2023–2025): Initial dips in major coins tie to oil spikes and uncertainty; global events increase crypto-stock correlations during risk aversion.

U.S.-China Trade Wars (2025 Tariffs): Escalating 50–100% tariffs under Trump caused dips but faster recoveries than equities, aided by crypto's decentralized bypass of barriers.

Wars disrupt regulation (e.g., stricter KYC in sanctioned areas) and flows, boosting stablecoins for transfers. Markets have desensitized by 2025, with muted impacts versus 2022; short-term drops average 5–10%, but long-term recovery follows, driven more by macro factors like rates.

Trump Administration's Impact on Cryptocurrency (2025)

The second Trump term (from Jan. 2025) is pro-crypto, shifting from past scrutiny to innovation focus, boosting confidence and pushing Bitcoin to $115,865 amid institutional inflows—despite ethical issues with family ventures.

Legislation/Regulation: July GENIUS Act regulates stablecoins for innovation; White House "crypto roadmap" advances lighter rules via Senate bills and Stablecoin Act. SEC eases enforcement; advisor Patrick Witt (replacing Bo Hines) drives progress.

Market/Ethical Effects: Policies add billions in value; Trump's family World Liberty Financial (WLFI) surges shares but sparks conflict-of-interest concerns amid deregulation. Utility tokens (e.g., XRP) thrive; adoption grows, though oversight risks rise with geopolitics.