Los Angeles Riots, the Ripple Effect on Finance and Cryptocurrency, and Trend Analysis!
Financial Market Impact:
In the short term, the riots have triggered a rise in risk aversion, with U.S. stock futures plummeting first. The decreased efficiency at the Port of Los Angeles impacts the supply chain, compounded by the uncertainty of the Trump administration's hardline military policies, exacerbating market volatility.
However, historical patterns show that social unrest typically impacts the U.S. stock market primarily through short-term emotional disturbances. Unless it escalates into a nationwide crisis, the economic fundamentals will still dominate the long-term trajectory.
Cryptocurrency Transmission Logic:
The correlation between the cryptocurrency market and U.S. stocks is over 80%. The “butterfly effect” of the unrest will transmit shocks to the crypto space through changes in risk appetite.
Short-term: Market liquidity is exhausted + main players' “pump and dump” strategy, soaring volatility risk.
Long-term: If U.S. political polarization intensifies dollar credit anxiety, Bitcoin and other crypto assets may become a “anti-fiat” safe haven, but it requires monitoring whether the unrest escalates into systemic risk.
The short-term bearish probability is high! It is recommended to avoid chasing highs and to wait for key resistance levels such as 110,000 for Bitcoin and 2,830 for Ethereum to play for gains; if the unrest continues to ferment, it cannot be ruled out that capital may reverse to go long using the “safe-haven narrative,” but caution is needed regarding the risks of policy intervention reversals.
