Israel launches airstrikes on Iran, global assets in turmoil, what will happen to virtual currencies and blockchain assets?
On June 12th, local time, Israel initiated Operation "Rising Lion" against multiple military and nuclear facility targets within Iran, instantly shaking the global financial markets.
From the perspective of traditional financial markets, risk aversion sentiment has fully intensified. International oil prices soared over 10%, with Brent crude oil exceeding $94 per barrel, reaching a nearly four-month high. As a safe-haven asset, gold surged significantly, breaking the $2600 per ounce mark and approaching a historical high. Meanwhile, the three major U.S. stock indices plummeted, with the Dow Jones falling 1.3% and the Nasdaq dropping nearly 2%, while global stock index futures also retreated. Investors flocked to U.S. Treasury bonds and other safe-haven assets in search of capital security.
Looking at the cryptocurrency market, cryptocurrencies led by Bitcoin collectively plunged. Bitcoin fell nearly 5%, with Ethereum, Cardano, Solana, and others dropping over 10%. According to Coinglass data, over the past 24 hours, more than $1.1 billion in cryptocurrency market contracts were liquidated, affecting 240,000 people, of which over 90% were long positions. Caroline Maloney, co-founder of crypto derivatives liquidity provider Orbit Markets, stated that the crypto market has synchronized its decline with other major risk assets, reacting negatively to news of Israel's strikes on Iran.
As for future trends, virtual currencies and blockchain-related assets are likely to be fully dominated by geopolitical news in the short term. If the situation in the Middle East worsens further and risk aversion sentiment continues to rise, funds may further withdraw from risk assets, and virtual currencies may continue to face selling pressure. However, if the situation eases and market risk appetite rebounds, they may see a recovery. Nonetheless, the cryptocurrency market itself is still influenced by various factors such as regulatory policies and technological developments, and its future trajectory remains highly uncertain.
On June 12th, local time, Israel initiated Operation "Rising Lion" against multiple military and nuclear facility targets within Iran, instantly shaking the global financial markets.
From the perspective of traditional financial markets, risk aversion sentiment has fully intensified. International oil prices soared over 10%, with Brent crude oil exceeding $94 per barrel, reaching a nearly four-month high. As a safe-haven asset, gold surged significantly, breaking the $2600 per ounce mark and approaching a historical high. Meanwhile, the three major U.S. stock indices plummeted, with the Dow Jones falling 1.3% and the Nasdaq dropping nearly 2%, while global stock index futures also retreated. Investors flocked to U.S. Treasury bonds and other safe-haven assets in search of capital security.
Looking at the cryptocurrency market, cryptocurrencies led by Bitcoin collectively plunged. Bitcoin fell nearly 5%, with Ethereum, Cardano, Solana, and others dropping over 10%. According to Coinglass data, over the past 24 hours, more than $1.1 billion in cryptocurrency market contracts were liquidated, affecting 240,000 people, of which over 90% were long positions. Caroline Maloney, co-founder of crypto derivatives liquidity provider Orbit Markets, stated that the crypto market has synchronized its decline with other major risk assets, reacting negatively to news of Israel's strikes on Iran.
As for future trends, virtual currencies and blockchain-related assets are likely to be fully dominated by geopolitical news in the short term. If the situation in the Middle East worsens further and risk aversion sentiment continues to rise, funds may further withdraw from risk assets, and virtual currencies may continue to face selling pressure. However, if the situation eases and market risk appetite rebounds, they may see a recovery. Nonetheless, the cryptocurrency market itself is still influenced by various factors such as regulatory policies and technological developments, and its future trajectory remains highly uncertain.