Bitcoin (BTC) could be the big winner if the U.S.-Iran conflict drags on for several months

Macro strategist Mark Connors argues that a prolonged U.S.-Iran conflict could significantly benefit Bitcoin. He posits that war-driven spending necessitates increased government debt issuance, which debases the dollar's value and increases liquidity in the financial system—a condition historically favorable to non-dollar assets like Bitcoin. Connors notes that if the conflict extends, deficit spending will accelerate, which he views as constructive for BTC. Although rising oil prices could cause inflation, he believes policymakers would prioritize financial stability, potentially leading to lower interest rates to manage the growing debt load, especially short-term Treasuries. This combination of rising debt and lower rates creates an optimal backdrop for Bitcoin performance.

(Source：CoinDesk)