Bitcoin Price Volatility Linked to US Military Involvement in Iran

Bitcoin's price has been volatile in recent weeks, with the asset experiencing an intraday swing of about 8% on February 28 following reports of airstrikes in Iran.

A study by BitMEX co-founder Arthur Hayes suggests that prolonged US military involvement in the Middle East could lead to Federal Reserve rate cuts or quantitative easing, which would have a positive impact on cryptocurrency markets.

Hayes' analysis notes that every major US campaign since 1985 has been followed by Fed easing, and he recommends a cautious trading approach until clear signs of monetary policy adjustments are evident.