Which crypto would suffer the most? (4 AI respond)

See which tokens could plummet by 90% if such a scenario were to play out.

Global geopolitical tension increased over the weekend after the United States and Israel carried out mutual attacks against Iran, creating a sudden wave of uncertainty that quickly spread across the region and beyond.

The military operation attacked many targets and ultimately led to the liquidation of Ali Khamenei (supreme leader of the Asian country). Iran retaliated against several nations in the region, including the United Arab Emirates, Bahrain, Qatar and Saudi Arabia. US President Donald Trump warned that the war could continue for up to four weeks, while major European economies (some of which are nuclear powers), such as France, Germany and the United Kingdom, have implied that they can “defend their interests” and soon join the conflict.

Right now, the world is watching the Middle East with growing concern, as the risk of broader conflict and even a possible Third World War seems more real than it has in years. Beyond the countless human lives this devastating event would take, it would also send shockwaves through the global financial and crypto markets. To explore the potential impact, we asked four of the most popular AI-powered chatbots which digital assets would be most affected if such a scenario were to unfold.

Little alternatives, memes and more

ChatGPT began with a disclaimer, stating that a world war will not just be “bad news” but will cause a “systemic liquidity shock.” He predicted that such a conflict would immediately lead to market panic, with stock dumping and credit freezing. In that type of environment, cryptocurrencies would be as affected as everything else.

The chatbot suggested that small-cap altcoins are most at risk because they have low liquidity, few real buyers, and large retail exposure. He warned that cryptocurrencies, whose market capitalization is less than $100 million and whose use cases are dubious, can collapse up to 90% in a World War III scenario.

Another sector that may experience real carnage is the meme coin niche. According to ChatGPT, tokens like PEPE, BONK, WIF, and FLOKI may drop to zero as they are based on sentiment and are known for their higher volatility:

“In a true risk-off event like a global war, speculative appetite collapses first and liquidity in meme tokens can disappear in a matter of hours.”

Google’s Gemini agreed with ChatGPT’s assumption. He predicted that such a major conflict could have a devastating effect on small and mid-cap altcoins and memes due to massive panic selling and complete lack of buyers.

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Perplexity specifically focused on the largest meme coins by market capitalization, Dogecoin (DOGE) and Shiba Inu (SHIB), estimating that they would likely suffer the most due to their “extreme sensitivity to risk-off sentiment and lack of fundamental usefulness.”

Grok, the chatbot built into X, presented a quite different thesis. He claimed that stablecoins like Tether’s USDT and Circle’s USDC could be among the biggest victims due to their connection to the US dollar:

“Stablecoins are pegged 1:1 to fiat currencies like the dollar, backed by reserves in banks, Treasury bonds, or other assets. In World War III, if major economies like the United States face hyperinflation, debt defaults, or bank freezes (as seen in historical wars), these reserves could become useless or inaccessible. In a global war, peg breaks could lead to outright devaluation, turning them into “IOUs.” digital” for a collapsing dollar.

How about BTC?

The four chatbots we consulted argued that Bitcoin would plunge substantially immediately after a possible global war announcement, but would remain the most resilient asset in the crypto sector. They also suggested that despite the initial shock, BTC could recover its losses relatively quickly compared to the rest of the market.

“BTC will likely fall sharply along with other risk assets as investors rush for liquidity. However, if the conflict leads to monetary instability or aggressive money printing, BTC could recover faster than most altcoins as its decentralization and “digital gold” narrative regain steam,” ChatGPT stated.