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Iran vs. Israel makes Bitcoin DUMP: What's happening NOW?
By Davide Grammatica
Renewed tensions between Iran and Israel have caused a sharp correction in markets and Bitcoin: what can happen now?
Bitcoin amid geopolitical tensions
The recent escalation of the conflict between Israel and Lebanon has resulted, in recent days, in a strong response fromIran, now directly involved in a war that is taking on ever greater dimensions in the Middle East.
Leaving aside various (albeit fundamental) geopolitical implications and the causes of the conflict, the whole affair also assumes relevance in relation to theperformance of global markets, which in fact register corrections on all fronts.
The same thing happens, consequently, to Bitcoin, which in fact marks a -4% in 24 hours after a particularly bullish week and is in danger of returning to defend the $60,000 level.
After the best September in BTC’s history, the famous “uptober” thus begins in the worst way, with the risk of affecting the performance of the altcoin sector as well.
On the correlation of the sudden collapse and the Iranian attack, some reservations remain, but it is still hard to imagine that the dump depends solely on technical factors. The renewed test of the $65k was expected by many analysts, and at this time the predictions of the past few weeks do not seem to be in question, but if the ongoing conflict takes on even greater dimensions this can only negatively affect the asset.
Wars are breaking out.
Some scholars say we are on the "brink of World War 3."
When Russia invaded Ukraine, the S&P 500 fell -11% in 3 MONTHS.
Today, oil prices are up 5% on Middle East tensions.
So, what happens to the stock market during times of war?
(a thread)
— The Kobeissi Letter (@KobeissiLetter) October 1, 2024
The reaction of the markets
If the crypto market itself is already very sensitive to volatility, the “rumors of war” coming from the east only make the situation worse. But global markets are experiencing the same situation .
In past years, for example, the S&P 500 was down 11 percent in three months following Russia’sinvasion of Ukraine (only to rebound big time in 2023). And that is why investors’ “fear” is not to be underestimated.
Only a few seem to be taking advantage of the situation now (such as oil or some commodity prices ), and in the short term it is well known that, following the outbreak of conflict, markets generally suffer.
It is equally true, however, that the bullish response of markets can often be more intense precisely once the initial dump has been absorbed. The S&P 500 in the aftermath of WWII teaches this, but in a small way also the various conflicts that have marked the history of recent years.
