In plain language: Why does Bitcoin skyrocket when the guns fire? When the guns fire, gold is worth a fortune, and digital gold goes even crazier!
At 4 PM on June 20, the price of Bitcoin shot up like a rocket that had been ignited! Many people were left stunned: what performance is this? Don't worry, let Anna clarify for you—the fuse is burning in the war far away!
In the early hours of that day, Russian drones suddenly attacked Odessa, Ukraine. The Ukrainian report was tragic: 1 dead, 14 injured, residential buildings collapsed, schools were affected, and cars caught fire. This news spread like wildfire, flooding global media and causing the financial world to explode! Why? Investors fear sudden outbreaks of war, worried that the scale of fighting will expand and drag the global economy down. In fear, 'risk aversion' becomes the top priority.
Why did it explode precisely at 4 PM?
The timing was just right! The news from Odessa had been fermenting for half a day, and panic reached its peak. Think about it, 4 PM is precisely the time when Europeans finish work and Americans just start trading, making global trading the most active. In panic, everyone frantically sells stocks and bonds, where does the money go? To the 'safe haven'! Bitcoin, known as 'digital gold', is usually quite volatile, but when the drums of war sound, it instantly becomes highly sought after—large sums of money (reportedly up to 3 billion dollars!) flood in like a deluge. With so many buyers, can the price not skyrocket? The shorts (those betting on Bitcoin's decline) collectively face liquidation, resulting in a bloodbath!
What does Anna think? The core is risk aversion, but don't think too simply!
To be honest, this surge can be attributed 80% to 'risk aversion'! Geopolitical conflicts are the ignition fuse. With clouds of war looming, Bitcoin's advantages become apparent: it's not controlled by any government and moves quickly around the globe. Large institutions and smart money love to jump in during such times to weather the storm. Why choose to explode at 4 PM? Because that's when the news heat is highest, especially with Russia's silence, which makes people anxious, coupled with the 'handovers' in European and American trading, resulting in explosive trading volume.
However, we must also stay clear-headed; the Bitcoin market is very complex. Just having a war is not enough; someone has to 'set the stage':
The technical aspect helped a bit: Bitcoin had been hovering around $106250 for quite a while, and this level was a 'key support'. Short sellers were betting that it would break down here, but instead of falling, the price was pushed up by risk-averse funds. Short sellers were forced to cut losses, which effectively added fuel to the rise.
The broader environment is also getting lively: Recently, the market feels that the Federal Reserve may not raise interest rates soon, or even might cut them, and inflation data remains stable. The atmosphere in the cryptocurrency circle is warm and fuzzy, adding some 'fuel' to this surprise attack.
Market movements driven by sudden events come quickly and disperse just as fast! If you're lucky enough to have boarded the train, just enjoy the ride; if you missed it, don't slap your thighs and chase hard—short-term fluctuations are too intense and can easily lead to injury! But we should remain cautious: large funds borrowing from the chaos to position in Bitcoin as a safe haven could be a signal. Ultimately, the long-term direction of Bitcoin still depends on how the global economy plays out.
Follow Anna, and you won't get lost in risk aversion!$BTC #特朗普施压鲍威尔