As Israel declares state of war against the Palestine military group Hamas, the crypto communication is speculating on how Bitcoin and the broad other coin market will react.
the market volatility tends to increase during Geopolitical crisis such as military conflicts while the price of commodities such as oil and gold increase investors tend to move away from face riskier assets such as stocks and crypto.
We expect volatility in short term
The photo below shows that while they are was uncertainty in the first month of the conflict the market started turning positive after 3 months in most cases in 75% of the cases the s&p 500 was positive 12 month after the military event.
The crypto currency market has not witnessed major geopolitical conflicts, except the Russia Ukraine war. Hence it is difficult to determine the isolated impact on the cryptor assets. however, there has been a correction between Bitcoin and the s and p 500 index.
As a result along with the s and p 500, Bitcoin is also likely to show volatility in a short time frame.
The bit finex alpha report shared with been crypto suggest that there will be High tend levels of volatility in bitcoins price action. the photo below shows the that daily historical volatility remains about the 200day exponential moving average (EMA).
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Disclaimer :
In this article, we only hope to share the information gained through our study of the market as knowledge. Through this we will not give you any market advice. Before making any investment in the crypto market, do your own proper research about the market and make your investments.