Geopolitical

The recent crypto market #collapse is due to

1. #Geopolitical Uncertainty – Bitcoin dropped over 13% since Trump took office, partly due to economic concerns.

2. #Security Breach – A $1.5B hack on Bybit hurts investor confidence.

3. #meme_coin Scandal – Argentina’s $LIBRA token crashed, affecting 40,000 investors.

These factors have increased market volatility and led to the downturn.
$SOL
$BNB
$ETH

This is based on basic economic principles:
scarcity and supply-demand imbalance.

Why Can Bitcoin Rise Parabolically?
1. Limited Supply
- Bitcoin has a maximum supply of 21 million coins, and about 19.7 million are already in circulation (as of April 2024).
- Every 4 years, the block reward (mining reward) is reduced by 50% (Halving), slowing the growth of new supply.

2. High Demand
- If demand (from institutions, ETFs, countries, or retail investors) continues to increase while new supply decreases, prices can skyrocket.
- Example: After the 2020 Halving, Bitcoin rose from ~$9,000 to $69,000 (2021).

3. FOMO Effect (Fear of Missing Out)
- When prices start to rise quickly, more people/institutions want to buy before it's too late, reinforcing the increase.

What Can Trigger Parabolic Movements?
- Adoption by Institutions
(example: Bitcoin ETF like BlackRock)
- Global Policies (e.g., Fed interest rate cuts)
- Uncertainty (Bitcoin as a safe-haven asset)
- Effects (like what happened in 2024, reducing new supply)

Correction Risks
Although the long-term trend is bullish, parabolic movements are often followed by sharp corrections (example: 2017, 2021). Therefore, risk management is important.

If demand remains high and supply tightens, phase could happen again!

#Geopolitical events significantly influence cryptocurrency market volatility. Wars, sanctions, and economic crises often drive investor sentiment, leading to increased interest in or retreat from digital assets.

From #Bitcoin’s surge during periods of high inflation to the growing appeal of privacy coins in times of uncertainty, the global geopolitical landscape continues to shape the adoption and evolution of the #crypto market.
$BTC

Today's US #tariff announcements led to a decrease in investor confidence in #cryptocurreny market.

So #investors are advised to monitor ongoing #geopolitical developments and regulatory changes closely, as these factors are likely to continue influencing #market dynamics in the near term.