š° The pipeline has just opened, and negotiations have just startedāthen the United States suddenly throws money and weapons at it. What exactly is the market supposed to do?
A couple of days ago, we talked about this issue, and now thereās new progress. The U.S. suddenly announced it would add weapons and increase pressure on Iran. Isnāt this basically meant to trigger a military conflict? In theory, such heightened tension should be bad news for the crypto market, yet both BTC and ETH are rising. Why?
Why this news matters
The U.S. is essentially issuing a ādeath orderā to Iran, hitting it with both weapons and sanctions. Why did this come out so suddenly? Put simply, Washington thinks it canāt make progress with negotiations, so it decides to use military means to reclaim face. What does this mean for the crypto market? It means geopolitical risk is escalating again, and demand for the U.S. dollar as a safe haven may get a boost.
Market impact
- What impact does it have on BTC/ETH prices? In the short term, sentiment will definitely be shaken. However, ETH ($2,769.3) is up 1.39% over 24 hours, which is more aggressive than BTC ($86,901.4) up 1.64%āthis suggests capital may be more afraid of how bad things could get in the Middle East. In the long run, if this turns into real war, BTCās āsafe-havenā narrative could be validated again. But ETHās narrative as a āglobalized digital assetā may be damaged.
- What impact does it have on the market structure? The U.S. is stepping up military preparations, which implies expectations of capital returning to the dollar are back on track. Think about itāif fighting really breaks out, wouldnāt dollar assets be taken even more? But this time is a bit different: itās both military and economic pressure at once, which could be stronger than the impact of rate hikes alone. At least in the short term, it may shift market attention away from the Federal Reserve and toward geopolitics.
Trading ideas
š” Personal view: This U.S. move looks more like itās trying to find something for domestic economic issues, because CPI ($316M) isnāt under much pressure, and the stock market ($12.5T) is already making fresh highs anyway. So for BTC, as long as it hasnāt broken below the $84K line, the logic that āincreased weapon stockpilesā holds true. But if war really does break out, that judgment becomes irrelevant.
This article has no sponsorship from any project, and the author does not hold any of the assets mentioned
ā ļø Not investment advice; forecasts are for reference only
$BTC #BTC $ETH
A couple of days ago, we talked about this issue, and now thereās new progress. The U.S. suddenly announced it would add weapons and increase pressure on Iran. Isnāt this basically meant to trigger a military conflict? In theory, such heightened tension should be bad news for the crypto market, yet both BTC and ETH are rising. Why?
Why this news matters
The U.S. is essentially issuing a ādeath orderā to Iran, hitting it with both weapons and sanctions. Why did this come out so suddenly? Put simply, Washington thinks it canāt make progress with negotiations, so it decides to use military means to reclaim face. What does this mean for the crypto market? It means geopolitical risk is escalating again, and demand for the U.S. dollar as a safe haven may get a boost.
Market impact
- What impact does it have on BTC/ETH prices? In the short term, sentiment will definitely be shaken. However, ETH ($2,769.3) is up 1.39% over 24 hours, which is more aggressive than BTC ($86,901.4) up 1.64%āthis suggests capital may be more afraid of how bad things could get in the Middle East. In the long run, if this turns into real war, BTCās āsafe-havenā narrative could be validated again. But ETHās narrative as a āglobalized digital assetā may be damaged.
- What impact does it have on the market structure? The U.S. is stepping up military preparations, which implies expectations of capital returning to the dollar are back on track. Think about itāif fighting really breaks out, wouldnāt dollar assets be taken even more? But this time is a bit different: itās both military and economic pressure at once, which could be stronger than the impact of rate hikes alone. At least in the short term, it may shift market attention away from the Federal Reserve and toward geopolitics.
Trading ideas
š” Personal view: This U.S. move looks more like itās trying to find something for domestic economic issues, because CPI ($316M) isnāt under much pressure, and the stock market ($12.5T) is already making fresh highs anyway. So for BTC, as long as it hasnāt broken below the $84K line, the logic that āincreased weapon stockpilesā holds true. But if war really does break out, that judgment becomes irrelevant.
This article has no sponsorship from any project, and the author does not hold any of the assets mentioned
ā ļø Not investment advice; forecasts are for reference only
$BTC #BTC $ETH
