1. Developments in Geopolitics in the Middle East
Israel launched an attack on Iran, causing oil prices to rise by more than 12%, and leading to a decline in risk assets such as stocks and cryptocurrencies.
A report from BeInCrypto indicates warnings from JPMorgan that a major escalation could push U.S. inflation towards 5%, putting pressure on future interest rates and negatively affecting assets like Bitcoin.
2. Economic and Speculative Factors
U.S. inflation indicators also suddenly declined, raising concerns about slowing growth and issues in investor expectations.
Trading of negative sentiment and prolonged yields: The market recently witnessed the unwinding of futures positions worth hundreds of millions, which increased selling pressure.
Is the Israeli attack on Iran the reason?
Yes, among several reasons. The attack created a shock in high-risk markets, but there are also a set of economic and financial factors:
Immediate and direct impact: Markets react quickly to war risks that may affect oil, the global economy, and the investment share of cryptocurrencies.
Interaction of other elements: Such as inflation data, geopolitical settlement activity, and potential risks of financial tightening.
