Crypto Amidst Geopolitical Turmoil: Opportunity in Disorder

In the midst of geopolitical turmoil, the cryptocurrency market in 2025 faces significant pressure from macroeconomic factors such as interest rates and tax policies, as well as widespread hotspots around the globe. The ongoing Russia-Ukraine conflict has persisted for four years, causing continued fluctuations in energy and food prices, which prompts investors to adopt a defensive stance. Meanwhile, tensions between Israel and Iran, along with conflicts between India and Palestine, create domino effects in the Middle East and South Asia, heightening risk fears. Escalations between Thailand and Cambodia have shifted from border disputes to military statements, while North Korea's peninsula remains tense. Additionally, China and Taiwan frequently deploy ships and conduct military exercises near sensitive boundaries. All these upheavals lead global investors to seek safe havens. Gold prices rise, the USD strengthens, yet the crypto market displays a clear polarization. Bitcoin, often called "digital gold," has yet to demonstrate this role convincingly in the initial crisis phase. Many altcoins lose liquidity as funds retreat from risky assets. Nevertheless, in this chaos, crypto could transform. If conflicts and tensions prevent residents in unstable regions from accessing traditional banking systems, they might turn to stablecoins or decentralized storage methods. The rise of currencies free from government control will attract more interest as institutional trust wanes. Overall, crypto is not immune to geopolitical upheaval, but during chaos, it can reveal its core properties: a borderless, decentralized financial system free from manipulation by any nation-states.