A Resilient Crypto Market Amid the War Between Israel and Hamas

It’s going to be a “long and painful” war, warned Israeli Prime Minister Benjamin Netanyahu last Sunday. Following the series of deadly surprise attacks by Hamas last Saturday, the world is inexorably witnessing yet another bloody Israeli-Arab conflict. At present, provisional reports indicate more than 700 deaths and 2,000 injuries on the Israeli side and approximately 400 deaths on the Palestinian side. Strangely, the ‘Al-Aqsa deluge’ has not yet affected the cryptocurrency market. However, the crypto community remains on alert.

Israel-Gaza War: Crypto Stays Strong

As Israeli retaliation against Hamas is just beginning, rumors are circulating about Binance’s potential involvement in this conflict. There are claims that Changpeng Zhao (CZ)’s cryptocurrency exchange, Binance, had close ties with Hamas.

Israel Hamas War 👀 WWIII on the Horizon? 🌞 (Bitcoin, Gold, Hard Assets! 💎) Crypto This Week! 📆https://t.co/kX32sE4BoC pic.twitter.com/lVZycnvzOG

— Crypto Casey (@cryptocasey) October 9, 2023

This tweet from Crypto Casey, a crypto analyst with 520,000 followers on YouTube, raises essential questions at the start of the Israeli-Palestinian conflicts.

According to Bezinga, the cryptocurrency market remains resilient despite this unexpected conflict. Why such a high level of resilience? Decentralization is undoubtedly a contributing factor. Thanks to this principle, cryptocurrencies can operate with exemplary efficiency, regardless of geopolitical changes.

Sure, cryptocurrencies are known for their volatility, and skeptics often highlight this Achilles’ heel. However, the ongoing war in Israeli and Palestinian territories has yet to penetrate the defenses of Bitcoin (BTC), Ethereum (ETH), and other altcoins.

Cryptocurrencies and Geopolitics

Several analyses now boldly classify Bitcoin and other cryptocurrencies as guarantors of a country’s monetary sovereignty. Russia, for instance, whose assets of nearly $330 billion were frozen by Western nations at the beginning of its ‘special operation’ in Ukraine, is actively exploring this option (and related technologies). Could it easily integrate with its Central Bank Digital Currency (CBDC), the digital ruble? Time will tell.

Returning to cryptocurrencies, you are probably aware that governments struggle to monitor, let alone halt, their proliferation. As a consolation, central banks that are part of the Bank for International Settlements (BIS) have collectively developed a cryptocurrency transaction monitoring system. Last week, they announced the launch of the “Atlas” platform.

Some investors currently view crypto assets as a financial means to diversify their portfolios, especially during times of economic uncertainty or impending recession. And the more they flock to these digital assets, the higher their value becomes.

Bitcoin, as the queen of cryptocurrencies, easily assumes the status of a safe haven in such conditions.

BTC, ETH, DOGE, SHIB… Minimal Damage

While the TerraLUNA crash in May 2022, followed by the FTX collapse in November 2022, deeply affected the crypto market, this Israeli-Palestinian conflict may not have an impact on this ecosystem. In other words, regional conflicts of this nature are unlikely to affect the situation of Bitcoin, Ethereum, or Dogecoin.

However, potential involvement of Iran, and consequently, oil, in this war could change something.

Checking CoinGecko, we learned that in the past 24 hours:

• Bitcoin (BTC) has only lost 0.3% of its value, with a price of $27,843.95 per coin at the time of writing;
• Ethereum (ETH) was down by 0.6% to trade at $1,620.55;
• Dogecoin (DOGE) experienced a 1.5% drop, currently priced at $0.060356 per coin;
• Shiba Inu (SHIB) shows only a 1.3% decrease, trading at $0.00000713 per coin.

The long war promised by Netanyahu is just beginning. In fact, Joe Biden has already promised unwavering support for his government. There will likely be an influx of US dollars in Israel, and perhaps even cryptocurrencies.