The blackest clouds, of the storm...
$BTC cannot raise its head and that is due, among other things, to Iran's attack on Israel, so you will ask me, what does it have to do with it?
To understand the relationship between one thing and the other, you have to understand that bitcoin, like other financial assets, does not operate in a vacuum. It is affected by a variety of global macroeconomic factors.
Among these factors, war conflicts occupy a preeminent position due to their immediate impact on investors' perception of risk. When a situation like the current military escalation between Israel and Iran arises, it creates an atmosphere of global uncertainty and fear.
Investors, in times of war tension, tend to be more cautious. Their risk aversion grows and, consequently, many choose to stay away from assets considered risky. Bitcoin, despite its growing popularity as a store of value and digital gold, is still viewed by many in the financial market as a high-risk asset. This is due to its historical volatility and relative youth.
The decision of investors to withdraw their capital from assets such as BTC in times of crisis leads to an increase in the supply of the asset in the market, without a corresponding increase in demand, resulting in a drop in its price. This is a direct reflection of the law of supply and demand, a fundamental economic principle that affects all financial markets.
sources: cryptonoticas.com
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