How will the war impact bitcoin, gold, oil and stocks?
Tensions are growing worldwide and conflicts could increase in the coming months.
Bitcoin behaves as a "risk asset", but it has quick recoveries.
The price of oil soars due to the possibility of greater shortages. October started "on the wrong foot." A few hours after the tenth month of the year began, wars in the Middle East, Russia and Ukraine are escalating to new heights. There are even those who dare to say that the world is on the brink of World War III.
In this context, financial assets are having varied behaviors. While bitcoin has a fall that takes it close to $60,000, the ounce of gold continues to trade near its historical highs and the price of oil is soaring. minutes ago what is happening with bitcoin. Basically, the market still perceives it as a “risky” asset, so its price tends to react downwards to situations that are perceived as chaotic or critical. This is because investors prefer to position themselves in assets that are usually considered safer, such as Treasury bonds or gold, in order to preserve their capital. In any case, bitcoin historically has rapid upward recoveries in such scenarios. Its bullish fundamentals always end up prevailing. The case of oil is particular. Today, prices have risen by 5%. According to analysts at the financial newsletter ‘The Kobeissi Letter‘, “the escalation of tensions in the Middle East, with Iran launching a major missile attack against Israel, has led investors to seriously consider the possibility of a large-scale conflict..
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