The military operation by the U.S. and Israel against Iran is expected to positively influence the price of Bitcoin, according to analysts from the London Crypto Club.
Loads going on in politics, AI and macro.
— LondonCryptoClub (@LDNCryptoClub) March 2, 2026
Read our summary of the current setup and what it means for crypto markets in the latest edition of Connecting the Dots — out now 👇https://t.co/eqMFAzTeMl
The conflict in the Middle East, which resulted in the death of Ayatollah Ali Khamenei, could act as a catalyst for Bitcoin's growth. Experts David Brickell and Chris Mills described the event as a "narrative catalyst" that the market has long awaited.
According to them, Bitcoin's recent underperformance is merely a typical cyclical correction.
Initially, it was pressured by tightening liquidity in the U.S., followed by a wave of rotation from tech stocks amid fears surrounding AI. This led many to question the "narratives of Bitcoin" and its role as a macro asset. However, the fundamental qualities of the cryptocurrency remain intact, the analysts emphasized.
Two Scenarios
The first scenario is a prolonged war. In this case, experts expect an "extreme flight to safety," where investors will start buying Bitcoin as a "hedge against the collapse of existing economic and political structures."
Counter to logic, Bitcoin could emerge as a beneficiary alongside gold, according to Brickell and Mills.
The second scenario involves a swift resolution to the conflict. If U.S. President Donald Trump announces a peace agreement, a "peace premium" will emerge in the market, driving Bitcoin prices upward in a wave of euphoria.
Regardless of the outcome, the Federal Reserve will inject more money into the financial system to support military actions, which will boost the cryptocurrency market, the analysts noted.
“Sell-offs of risk assets during wars are usually very short-lived, as conflicts lead to increased debt and deficits, requiring even more liquidity and the activation of the 'printing press' to finance the war,” they commented.
Historical Parallels
Arthur Hayes, founder of BitMEX, shares a similar view. He believes the Federal Reserve will shift to a more accommodative monetary policy to support U.S. foreign policy initiatives.
The expert referenced long-term data: U.S. military campaigns have consistently led to increased federal spending and subsequent reductions in Fed rates. This has historically acted as a positive catalyst for markets, including cryptocurrencies.
At the time of writing, Bitcoin is trading around $67,400, having risen 2% in the last 24 hours.
Hourly chart of BTC/USDT on Binance. Source: TradingView.
As a reminder, earlier in March, Samson Mow, CEO of JAN3, predicted an increase in the first cryptocurrency due to an overheated gold market.