Israel's airstrike on Iran, why is the cryptocurrency market once again plunged into 'panic'?
At 8 AM, a shocking piece of news broke the silence globally: Israel conducted an airstrike on Iran. As soon as the news broke, the financial markets were thrown into turmoil, especially in the cryptocurrency sphere, where investors' nerves were tightly strung. Ethereum, the leader in digital currency, seemed to touch a high of $2800 in that moment, which sparked a wave of chaos in the market—was this a signal of reaching a peak? Is the cryptocurrency market about to face a new round of major declines?
In the face of such an unexpected event, many people's first reaction might be panic. After all, military conflicts have always been seen as 'black swans' in financial markets, and the uncertainty they bring is often enough to cause asset prices to fluctuate instantly. However, when we calm down and carefully examine history and reality, we may find that things are not that simple.
Looking back over the past few years, the conflict between Russia and Ukraine has lasted quite a long time. Although there were indeed short-term drastic fluctuations in the market at the beginning of the conflict, over time, investors gradually learned how to find balance amid this uncertainty. Similarly, the friction between Israel and Iran is not a new phenomenon. Although these conflicts often tug at the nerves of the world, in the long river of financial markets, they no longer seem to be 'bombshells' capable of triggering widespread turmoil.
