Conflict reignites in the Middle East, the cryptocurrency market plummets across the board, and gold experiences another surge!
Last night, Israel attacked Iran, triggering volatility in global markets.
$BTC instantly dropped by about 3%, from approximately $107K to around $103K, causing panic in the cryptocurrency space.
Spot gold surged by $50.08 during the day, now reported at $3435.87 per ounce, with an increase of 1.48%.
At the same time, the US dollar, Japanese yen, and Swiss franc have also become safe havens for funds, with the dollar index rising by about 0.4%.
Why is this happening?
The cryptocurrency market is too sensitive; a slight disturbance leads to a drop. Although Bitcoin is often referred to as digital gold, it is still too fragile in the face of geopolitical conflicts.
The real safe-haven asset is gold; even if you think it's old, slow, and has no future, when war strikes, the world's money still flows to it.
Context determines asset attributes; no matter how strong an asset is, it can also become worthless in times of conflict.
So, stop using $BTC as a shield for risk; the market has already voted with its feet.
Every time something happens, gold rises; every time something happens, Bitcoin plunges first. Reality is always harsher than the narrative.