How does war bloodily wash the crypto market? You must recognize these 4 brutal logics
1. Capital Flight: The First Drop of Blood for Risk Assets
When war breaks out, the market instinctively reacts by seeking safety. Institutions and big players will not hesitate to sell stocks, cryptocurrencies, and other high-volatility assets, instead hoarding cash, gold, and US Treasury bonds. Your holdings? Merely the sacrifices on their path to evacuation.
2. Leverage Slaughter: The Death Spiral of Continuous Liquidation
High leverage is an accelerator in a bull market, but a meat grinder in wartime. Under severe price fluctuations, the forced liquidation mechanisms of exchanges will bury both long and short positions like a row of dominoes falling. What you think is a bottom-fishing opportunity may just be the last second before liquidation.
3. The Disillusionment of Digital Gold: The True Face Under Liquidity Crisis
Bitcoin's anti-inflation narrative crumbles under real panic. At the beginning of a war, institutions won't differentiate between “decentralized assets”; all non-cash assets will be sold off—including your “digital gold” that you believe in.
4. The Speculators' Revelry: Using Panic to Complete a Bloody Washout
Every geopolitical conflict is the best harvesting script for big funds. They exploit market panic to drive down prices, create liquidity crises, and after retail investors have cut their losses, they buy back at low prices. What you think is the market hitting bottom? It may just be the slaughter line drawn by the speculators.
Remember: In financial markets, there are no winners in war, only survivors.
