The impact of geopolitical developments on markets is an undeniable fact. In recent days, the tension between Iran and Israel has had a great impact on global markets. In particular, it was a matter of curiosity how large assets such as Bitcoin and Ethereum in the cryptocurrency market would be affected by this tension. Ethereum attracted attention as its price dropped below $2,500. Bitcoin also dropped below $62,000 for a short time. As Kriptokoin.com, we examine the impact of these developments on the markets.
Conflict Comment from Analyst Thompson: Crypto Markets on Alert
Quinn Thompson, founder of Lekker Capital, evaluated the possible effects of the conflicts between Iran and Israel on the crypto market. However, he stated that the markets are waiting cautiously. Thompson emphasized that there is hope that Iran’s reactions will be measured. However, he noted that the potential for such tension to spread in the Middle East still exists. Therefore, investors have turned to safer assets, taking these risks into consideration.
The probability of a major conflict in the Middle East is estimated at only 20%. If such a situation were to occur, the impact on the market would be catastrophic. Quinn Thompson stated that such risks should not be ignored by investors. He also said that these risks caused re-pricing in the markets.
Impact of the Economic Calendar on the Crypto Market
In addition to geopolitical risks, important economic data to be announced by the USA this week also affects the markets. Thompson stated that economic indicators, especially unemployment rates in the United States, will be decisive in the movements in crypto and traditional markets. Many investors have turned to routine hedging, avoiding risky assets. This contributed to today’s sales.
Nasdaq’s 1.5% depreciation in early trading also affected the cryptocurrency market. Bitcoin, often referred to as “digital gold”, continues to be seen as a safe haven despite this decline. However, Bitcoin could not remain immune from the uncertainties in this process and fell below $ 62,000 for a short time.
Thompson’s Results and Prospects
Thompson explained that in crypto markets, assets such as Bitcoin and Ethereum are both overbought on optimism. Considering how overpriced many assets are by technical indicators, these assets become more vulnerable in times of bad news, he said. Stating that investors should be more cautious in light of the Iran-Israel tension and US economic data, Thompson pointed out that volatility may increase in the coming days.
As a result, both geopolitical risks and economic data continue to impact crypto markets. Stating that investors should follow the markets carefully and be prepared for potential risks, analysts continue to draw an uncertain picture for Bitcoin and other cryptocurrencies in the short term.
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