At 8 a.m., a shocking piece of news broke the silence: Israel launched airstrikes on Iran. As soon as the news came out, the financial markets were instantly turbulent, especially in the cryptocurrency space, where investors' nerves were tightly strung. Ethereum, the leader among digital currencies, seemed to touch a high of $2800 in that moment, which then sparked a wave of speculation in the market—was this a signal of peak? Is the cryptocurrency market about to face a new round of major declines?
In the face of such sudden events, many people's first reaction may be panic. After all, military conflicts have always been viewed 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 so 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 violent fluctuations in the market at the beginning of the conflict, over time, investors gradually learned how to seek balance amidst this uncertainty. Similarly, the friction between Israel and Iran is not a new issue. While these conflicts often tug at the global nerves, they seem no longer to be 'bombshells' capable of triggering comprehensive turmoil in the long river of financial markets.
So, why did the news of Israel's airstrikes on Iran still cause a huge stir in the cryptocurrency space? This may be closely related to the current market background trend. In a bearish environment, any negative news can become the last straw that breaks the camel's back, triggering a comprehensive market collapse. However, in the current bullish context, the situation is different. Although conflict news can still trigger short-term market fluctuations, major funds often use these messages to manipulate market trends and create a specific market atmosphere.
In such a market atmosphere, many investors are bound by a kind of inertia thinking. They firmly believe that once prices rise, a significant drop must follow. This obsession is particularly common in the cryptocurrency space, to the extent that many people can't wait to 'short' for profit when they see even slight price fluctuations. However, the reality is often not that simple. Major funds take advantage of this psychology, using continuous fluctuations to 'brainwash' the market, leading investors to form incorrect expectations.
Thus, when news of Israel's airstrikes on Iran broke, many immediately connected it with a major drop in the cryptocurrency market. They forgot the essence of the market and the complex logic behind price movements. They blindly followed the market's fluctuations, trying to seize profit opportunities in every rise and fall. However, the result of this approach is often disappointing. Many suffer heavy losses due to overtrading and frequent stop-losses, and some even end up liquidated.
In fact, when we step out of the short-term fluctuations of the market and look at the issue from a more macro perspective, we may find that things are not so pessimistic. Although sudden events like military conflicts can indeed have some impact on the market, this impact is often short-term and limited. What truly determines the long-term trend of the market are those more fundamental factors—such as economic fundamentals, policy directions, technological innovations, etc.
Therefore, for investors, it is particularly important to remain calm and analyze rationally when faced with sudden military conflicts and similar events. Rather than blindly speculating on market trends and trading frequently, it is better to focus more on learning financial knowledge and improving investment skills. Only in this way can we stand undefeated in a complex and ever-changing market environment and become true 'militarists' of the financial market.
