The dynamics of the digital asset market today are influenced not only by internal industry developments but also by global macroeconomic and geopolitical factors. One key element currently in focus is geopolitical tensions in the Middle East, which have significant potential to affect investor sentiment and price movements of cryptocurrencies.
Geopolitical Turbulence and Crypto Market Reactions
Uncertainty arising from conflicts and political situations in the Middle East often triggers a "risk-off" reaction in global financial markets. This phenomenon makes investors tend to pull capital from high-risk assets and switch to assets deemed safer.