International Situation Turbulent
The Big Pie Begins to Fluctuate
The Israel-Hamas conflict reignites, with four U.S. aircraft carrier strike groups gathering in the Red Sea, profoundly affecting the trends of U.S. stocks and Bitcoin.
U.S. stocks are impacted by panic sentiment, leading investors to sell off stocks and putting pressure on the market. There is a clear divergence among sectors, with defense and energy stocks rising due to war demands and rising oil prices, while multinational companies see their stock prices fall due to the impact on their Middle Eastern operations.
Bitcoin experiences significant short-term fluctuations. When regarded as a safe-haven asset, demand increases and prices rise, but volatility in the financial markets can shift funds towards the U.S. dollar, leading investors to reduce their investments in Bitcoin, causing its price to fall. In the long term, Bitcoin's prospects are influenced by Federal Reserve policies, the global economy, and regulatory factors. When the macroeconomic and regulatory environments improve, there remains potential for price increases.
