The financial market is shaken after the U.S. military strike on Iran
Dark Sunday. The global market fell into chaos after the United States bombed Iran and Tehran retaliated by blocking the Strait of Hormuz, the world's strategic oil route.
This event triggered strong sell-offs across all sectors. From stocks to the cryptocurrency market, from crude oil to the USD and euro. The global financial system feels heavily hit, as if it has just been dealt a heavy blow.
Oil prices are highly volatile
In the first trading session after futures contracts opened, WTI oil rose by $1.76, or 2.38%, to $75.60 per barrel. Brent crude also surged by $1.80, 2.34%, reaching $78.81. In fact, oil prices even hit $81, a 5.7% increase, before falling back.
Currently, oil prices have adjusted down by 0.5%, leaving analysts feeling confused. The market is waiting for Iran's actions following Foreign Minister Hossein Amir-Abdollahian's statement that Iran 'has all options' to defend its sovereignty. Experts predict that if Iran does not respond strongly, oil prices could return to their initial state or drop even further.
Bitcoin is experiencing erratic fluctuations, losing over $1 billion in positions within 24 hours
Cryptocurrency is not at ease. Bitcoin has dropped to $98,000 – the lowest in over a month. However, less than an hour later, it bounced back above $102,000 before falling again. At the time of writing, the price of Bitcoin is $100,879.
The crypto market is in turmoil. Over $1 billion in crypto positions have been liquidated within 24 hours, with more than 95% of positions being long. The flow of cryptocurrency ETFs has also declined, according to CoinGlass. From Monday to Wednesday, the capital inflow into ETFs reached $1.04 billion, but by Friday, it was only $6.4 million, coinciding with President Donald Trump's decision to withdraw from the G7 and the review of U.S. strategy on Iran.
The correlation between Bitcoin and Nasdaq indices has rapidly increased recently, overshadowing the hypothesis that Bitcoin is a safe haven. Instead, this cryptocurrency is trading like high-risk tech stocks.
Asian, European stock indices, and U.S. futures contracts are all under pressure
U.S. futures contracts began to decline. The Dow Jones dropped 109 points, or 0.3%. S&P 500 decreased by 0.3%, and Nasdaq 100 fell by 0.4%. In Asia, the market opened in a distinct red.
Japanese stocks plummeted, with the Nikkei 225 losing 0.56% and Topix dropping 0.49%. Leading tech companies like Screen Holdings, Lasertec, and Disco all fell between 3.38% and 4.78%. The South Korean market also fared poorly, with Kospi down 1.05%, Kosdaq down 1.78%, and Hyundai Motor and Kia both dropping over 4%.
The markets in Australia, Hong Kong, and Europe also recorded negative developments, with major indices like S&P/ASX 200, Hang Seng Futures, DAX, FTSE all reversing to decline or moving sideways amid political instability and widespread geopolitical tensions.
The London exchange and other continental markets showed limited growth, with the euro also experiencing high volatility, rising from $1.15 to $1.80 at peak moments, then cooling off immediately afterward.
Source: https://tintucbitcoin.com/thi-truong-tien-dien-tu-co-hoi-va-rui-ro/
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