On Saturday night, Iran launched an attack on Israel and fears of a broadening conflict in the Middle East intensified.
Although this counter-strike was predictable, it can easily broaden to have the effect of a Black Swan event.
Bitcoin saw an immediate $6,000 one-hour candle dump. When we look back to the last global shock, and I'm referring to the worldwide lockdown of 2020, we saw Bitcoin plummet 60% over the following three weeks before immediately rebounding and going on a bull run of 1,400% to new all-time highs despite the ongoing pandemic.
Interestingly, the outbreak was at the same time relative to the last halving event in April 2020, so proving Bitcoin's resilience. to all-time highs Markets are better informed than any media outlets.
So maybe this capital flight is a worrying signal although I cannot see anything other than a strengthening US dollar in the short term, despite the efforts of the BRICS countries.
Both Russia and China are known to be buying gold in large quantities, and it's quite possible that Iran, too. Both Bitcoin and gold are perceived as hard currencies, even the hardest currencies, and a great store of wealth during uncertain times.
But they are both highly liquid markets, so that any major global shock, there is a quick flight to cash, but thereafter the hardest currencies perform strongly.
And finally, the Hong Kong Authorities have approved ETFs in Bitcoin and Ethereum. Will this herald large inflows from China? Trading opens for both Bitcoin and Ethereum ETFs on April 30th.
I'll record more about this in the coming few days.
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Also, please remember that this is for educational and informative purposes only and does not constitute financial advice.
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