Late last night, reports emerged that Israel may have launched a military strike against Iran. This unexpected escalation sent shocks through global financial markets, leading to a sharp move towards risk aversion.
Market reactions were immediate:
• S&P 500 futures fell by about 2%.
• Crude oil prices rose by about 10%.
• Gold is seeing renewed demand as a safe-haven asset.
Due to the recent high correlation between U.S. stocks and $BTC , the cryptocurrency market reacted negatively to the news. Investors moved away from risky assets and switched to traditional hedging instruments like oil and gold.
If the risks of war persist, what next?
As long as geopolitical uncertainty remains high, it is likely that capital will favor defensive assets. In such a scenario:
• Commodities like gold and oil could continue their upward momentum.
• On the other hand, cryptocurrencies and stocks may face further downward pressure.
The key variable here is whether Iran will respond. A military response could escalate the situation further. Conversely, signs of diplomatic efforts might help stabilize market sentiment.
What about Bitcoin?
As mentioned earlier, $100,000 is a critical psychological and technical support level for Bitcoin. As long as this level holds, we are unlikely to see significant structural damage to the overall upward trend. However, if it breaks, caution will be warranted as concerns may escalate.
Conclusion:
We enter a highly volatile trading day shaped by global politics. This is a critical moment not just for cryptocurrencies, but for all markets. Follow the headlines, monitor key technical levels, and manage risks accordingly.
I will continue to share updates as things develop. Stay safe and trade wisely.