Once the cannons fire
Gold worth thousands?
Wrong! Once the cannons fire
Global assets are caught in the crossfire!
Brothers! Just woke up and checked my phone, almost sprayed coffee on the screen! Israel really took action, directly giving Iran a precise greeting! Early in the morning, the Middle East powder keg has sparked again, scaring the global market!
Look at the US stock index futures, they react faster than a rabbit, diving like a high dive! Nasdaq futures (representing tech stocks) plummeted by 1.5%, S&P 500 (large-cap stocks) fell by 1.3%, and even the Dow Jones (blue-chip industrial stocks) couldn’t hold on, dropping by 1.1%. This level of drop usually requires a major news event to brew, but now with the Middle East igniting, it happens in minutes! It truly is, 'As soon as geopolitical risks surface, risk assets tremble!'
What does this have to do with our crypto circle? It matters! It's a big deal! Let me break it down for you:
Bitcoin (BTC) can’t think of going it alone in the short term: When US stocks crash, global investors panic! What’s the first reaction when panicking? 'Sell, sell, sell! Better to run first!' Whether it’s stocks or cryptocurrencies, as long as it’s a 'risk asset', it all gets hit first! Remember when the Russia-Ukraine conflict started last year? Didn’t Bitcoin also plummet alongside US stocks? History might repeat itself! Altcoins are trembling!
Is it the time of the digital gold halo? Maybe! But it could also be mistakenly killed: Theoretically, Bitcoin has hedging properties. In chaotic times, some funds might want to seek refuge in Bitcoin. BUT! Given the current situation, panic sentiment dominates, and Bitcoin is more likely to be sold off together with high-risk tech stocks! Only when the panic calms down a bit will funds remember that Bitcoin is an option. So, it might be mistakenly killed in the short term, but in the medium term, we’ll see if it can attract safe-haven funds.
Demand for stablecoins may rise: When war breaks out, everyone wants to hold steady money. Stablecoins like USDT and USDC may become more popular because everyone wants to hide in a 'safe haven' and observe. The inflow and trading volume of on-chain stablecoins may increase.
So, my friends, when the cannons fire in the Middle East, the global market has to pay attention! The US stock plunge is just an appetizer; the major drama in the crypto circle has only just begun!
Want to know where the shells are flying to in real-time? Where is the money running? Is Bitcoin diving off a cliff with US stocks or rebounding to become 'digital gold'? Don’t panic! Just follow me!
