When Israeli and U.S. forces started attacking Iran on Feb. 28, crypto markets moved before U.S. stock exchanges opened. Bitcoin (CRYPTO: BTC) wobbled, then clawed its way back above $71,000 within days, which is roughly where it is now, two weeks later. So far, crypto prices haven’t collapsed, and majors like Ethereum, (CRYPTO: ETH), Solana, (CRYPTO: SOL) and XRP(CRYPTO: XRP) have actually held up pretty well despite the volatility.
If you’re wondering whether to sell your coins right now, don’t do it. One key thing to know is that Bitcoin, Ethereum, Solana, and XRP do not have substantial direct exposure to risks stemming from this conflict spiraling further out of control. Official Bitcoin mining activity in these countries accounts for less than 0.5% of the network’s computational power; when estimates of unofficial mining activity are taken into account, their proportion of global mining power rises to 5% at the very most. Nor are there any records indicating that any of the combatants, save the U.S., retain significant crypto reserves.
The problem with crypto as an asset class is that it tends to experience disproportionate downside when the traditional financial markets are selling off as a result of a new catalyst. Crypto is still very much exposed to whatever this conflict brings. Therefore, if you might need your investment dollars in the next five years, the current macro risk environment is a real reason to slow down with buying risky assets. But if your time horizon is longer and setbacks along the way won’t force your hand, the conflict itself doesn’t alter the investment case for any of these four assets, and you still shouldn’t sell them.
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. Alex Carchidi has positions in Bitcoin, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Solana, and XRP.
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