#USIranWarCloudsGather

Markets Watching the U.S.-Iran Situation Intensely The latest escalation between the U.S. And Iran is yet another demonstration that geopolitics can completely turn the markets’ mood on a dime. The latest military attacks, re-imposed sanctions and the ever-present threats of an invasion, that could lead to the closure of the Strait of Hormuz, have become by far the biggest macro issue on my agenda. The market’s reaction was practically immediate.

The price of oil jumped as traders factored in the possibility of an interruption of oil supplies, and risk sentiment took a serious downturn.

When the energy markets get volatile, inflation concerns tend to creep back in and uncertainty can spread to all markets- Stocks, Commodities, and Cryptocurrencies. On the trading side, I am working to prevent myself from overreacting to the headlines. Volatility created by news events can create an opportunity to profit, but can also create losses stemming from emotional decisions. At the present moment, I am focusing more on how Bitcoin and the rest of the crypto markets are behaving at crucial support/resistance levels than trying to predict how the geopolitical conflict may evolve.

As I’ve noticed more than a few times in my trading experience, markets tend to get ahead of the news, meaning that risk assets may quickly turn around if tension ease; and Conversely, risk assets can take a heavy hit again if conflict extends or it impact oil supply globally.

I also watch Capital Flow – Some people move towards Defensive assets, other people use the sharpest pullbacks to establish new positions; that’s why it’s important to have a clear strategy rather than to trade on emotions. This is not a moment to jump on euphoria or to be afraid, but rather a moment to manage risks, stay informed and be patient until we get a clearer picture of where the markets are headed. Volatility creates opportunities, but they only materialize when discipline is maintained.

How do you plan to approach the current situation; have you increased your cash/stablecoins allocation, are you buying the dip, or do you intend to wait for some clarity before deciding your next move?

‍#CryptoMarkets #GateSquare