Here’s How Low Bitcoin Could Go if Geopolitical Tensions Escalate Further
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Despite the escalation of geopolitical tensions in the Middle East, QCP Capital analysts say market sentiment remains generally positive.
In their Wednesday report, the firm’s experts said Iran’s missile attack on Israel led to only a limited sell-off in traditional assets, with the S&P 500 closing 1% lower and oil prices up 2%.
Bitcoin also fell about 5%, finding support at $60,000. Analysts warned that further escalation of the conflict could push Bitcoin lower, potentially to $55,000.
QCP Capital compared China’s current economic measures to Japan’s policies in the 1990s, highlighting how China’s recent stimulus could support global risk assets, including cryptocurrencies.
Liquidity injections from the People’s Bank of China and potential fiscal support are expected to boost asset prices in the country, with bullish sentiment likely to spread globally.
In addition, the report highlights the dovish comments of US Federal Reserve Chairman Jerome Powell. Both the Fed and the People’s Bank of China are expected to take more aggressive easing measures, which could support asset prices globally.
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