Expert says prolonged US-Iran conflict could be a major boon for Bitcoin

A prolonged military conflict between the U.S. and Iran lasting several months could make Bitcoin the biggest beneficiary due to increased government spending and rising debt, argues Mark Connors, head of Risk Dimensions. Connors, the former Global Head of Portfolio & Risk Advisory at Credit Suisse, projects that accelerated deficit spending by the U.S. to fund war costs would expand market liquidity and devalue the dollar. He explained that in such a scenario of currency debasement, capital would increasingly flow into non-dollar, scarce assets like Bitcoin. The analysis also highlights that the Federal Reserve would likely maintain low interest rates to stabilize the government bond market, which would be another positive factor. Connors concluded that despite concerns about stagflation, the prioritization of financial stability and debt management would create a favorable environment for Bitcoin.