The responses from the popular AI chatbot might be too surprising for some.
The United States and Israel carried out a swift and violent operation in Iran on February 28, which reportedly killed the country’s supreme leader.
Iranian forces have already retaliated against several countries in the region, and these developments have caused significant volatility in the cryptocurrency market over the weekend.
While Trump has warned that military action may not back off if Iran continues, the question now is whether and in what direction more changes will come. In this article, we focused on XRP and asked ChatGPT about this issue.
First shot
The OpenAI solution also created an initial geopolitical shock that is expected to hurt most financial assets, especially risky options like altcoins, as investors tend to de-risk.
“This means moving money away from volatile assets (such as cryptocurrencies) and into traditional safe havens, such as gold or government bonds. This has already happened in recent responses to the US-Iran conflict. Historically, crypto markets have not always behaved as safe havens. Studies of past conflicts (such as Russia and Ukraine) often show that cryptocurrencies have the highest volatility instead of absorbing risk like gold.”
As a result, ChatGPT said bear pressure is immediately increasing for altcoins like XRP. It added that institutional liquidity usually retreats in such uncertainty, and Ripple’s cross-border token could see new local lows below $1.00. We remind you that the asset has not been sold below this level for a year and a half, but if the situation worsens in the following days, it may fall.
Rally Chance?
Although it ruled out the possibility of a quick rally given the above-mentioned shock, ChatGPT noted that it is not impossible for the medium to long term. For this, at least one of the following three factors must occur.
- Demand for digital assets as a store of value is increasing
- Sharp returns for high-risk assets, such as larger altcoins.
- Major regulatory or adoption news made for XRP
“In other words, XRP could rise if the market’s focus shifts away from the risk of war to cryptographic fundamentals.”
However, overall, ChatGPT believes that the short-term bias (in the first few weeks) will remain low, but when the shock passes or geopolitical tensions subside, XRP may be on the verge of a rally.
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