Middle East Tensions & Crypto

Hello legend, how have you been?

Market is going through tough times now. The geopolitical tension between Iran and Israel reached to a boiling point. The missile attacks from both sides made the situation worst. Missiles were attacked to opponent nation but it was crypto who caught the crossfire.

Although in these situations, decentralised assets like Gold and cryptocurrency rises but that is in long term. In short term, market does react sharply on the news of war.

In long term, decentralised asset rises because people have less faith in government and more in decentralised asset because in emergency situation, government can control whatever is centralised.

For example, in Russia-Ukraine war, there were reports that Russian government froze the bank accounts of people. People were sending crypto to each other to fight with issues like this.

Why market reacts so sharply?

Geopolitics is a market-moving force. Middle eastern things impact oil prices and it affects all the markets. Within just 24 hours of the Iran-Israel escalation, more than $1.12 billion in crypto positions were liquidated, with $335 million flushed out in a single hour. Most of these positions were long positions.

Crypto is a risk asset. I know we are

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