Geopolitical conflicts can lead to a decrease in investor confidence and a flight to safe - haven assets. Capital may flow out of high - risk cryptocurrencies. However, some cryptocurrencies like Bitcoin, which are seen as "digital gold," may show more resilience. Stablecoins may also be in demand as a relatively stable store of value. Investors should increase their allocation to more stable assets during political instability. They can also reduce their overall exposure to the cryptocurrency market and wait for more favorable political conditions. For example, during the Russia - Ukraine conflict, Bitcoin initially saw a decline but then showed some recovery as some investors saw it as a hedge against inflation and geopolitical risks.