While traditional financial systems have been affected, there has been speculation about the use of cryptocurrencies in the conflict.
The current conflict between Israel and Hamas in Gaza has attracted widespread attention around the world. As the world watches, the impact of this conflict is being felt not only on the ground but also in the financial markets. In particular, defense stocks experienced significant fluctuations.
Hamas may have used digital currencies as a means of financing its operations. The US Department of Justice is investigating money laundering cases involving cryptocurrency accounts linked to Hamas. Although details are still scarce, it is evident that these accounts were confiscated by the US government three years ago.
Two questions arise on this topic, which will be discussed below: How are cryptocurrencies, decentralized digital assets, responding to these geopolitical tensions? Will cryptocurrencies crash?
Cryptocurrency Forecast
Bitcoin (BTC): Bitcoin, a pioneer of the crypto world, recorded a slight increase in the last 24 hours. The current price is $26,932.88, an increase of 0.75%. However, over the past week, Bitcoin recorded a drop of 3.68%.
Ethereum (ETH): Ethereum, the second-largest cryptocurrency by market cap, is priced at $1,556.71. It registered a growth of 0.97% in the last 24 hours. However, last week’s performance was negative with a drop of 5.07%.
BNB (Binance Coin): BNB, the native token of the Binance platform, is at $206.82. There has been an increase of 0.55% over the last day. Over the past week, BNB fell by 2.73%.
Cardano (ADA): Cardano, a blockchain platform for smart contracts, is currently priced at $0.2476. In the last 24 hours it registered a slight growth of 0.33%. However, the weekly performance shows a drop of 4.23%.
Ripple (XRP): XRP, better known for its digital payment protocol than its cryptocurrency, is priced at $0.4875. There has been an increase of 1.36% in the last 24 hours. Last week, XRP suffered a drop of 6.76%.
Crypto at a Crossroads
As BlackRock and JPMorgan dive deep into the cryptosphere, the IMF has clearly expressed its concerns about the impact of this conflict on economic stability. The call for reforms in the crypto industry shows how vulnerable the sector is to geopolitical fluctuations.
Beyond the growth forecast for the Middle East, the IMF believes that the current conflict poses substantial risks to the economic health of the region. In an increasingly interconnected world, even remote markets are feeling the weight of these tensions. The IMF recommends “managing technological transformations,” to avoid digital fragmentation that could hinder innovation and growth in the crypto sector.
The current crisis has revealed how fragile the global economy is. And in this equation, cryptocurrencies, with their disruptive potential, have an important role to play. As the IMF revises its forecasts, the crypto community must be proactive and innovative.
Janet Yellen, US Treasury Secretary, highlighted the danger that this conflict represents for a global economy that is already on a knife’s edge. He called on Israel for support, while warning against escalating hostilities.
In this tumultuous landscape, cryptocurrencies can offer innovative financial solutions. It represents both a challenge and an opportunity for global economic actors. Cryptocurrencies are more than just a digital currency.
In the current context, it is presented as a potential pillar of global financial stability. However, the industry must evolve to meet current challenges. The coming months will be crucial in defining the place of cryptocurrencies in the global economic landscape.
By Leonardo Pérez
