#USEndsLatestStrikesOnIran

U.S. Iran Conflict Rising and Global Markets Watch

The latest events unfolding between the United States and Iran is yet another stark reminder of just how quickly global markets are impacted by geopolitical events. As reports of more strikes on key strategic facilities began to surface and following warnings of more strikes and the potential for retaliation the uncertainty on the markets globally continue to climb.

It’s inevitable that every time conflict in the Middle East arises investors start paying close attention to energy markets. The region is a vital source of the world’s oil supply and the threat of any disruption will have a swift and predictable effect on oil prices. These increased energy costs will in turn put upwards pressure on inflation expectations, which is a key indicator that central bankers and global markets closely follow.

In the world of crypto we see a bit of a mixed reaction during geopolitical uncertainty. Some investors opt to transition from their crypto positions to more traditional “safe haven” assets such as gold, while others see the increased volatility and uncertainty as an opportunity to move intoBitcoin and other select digital assets that can be viewed as a safe haven for storage of value during such times. The quick sentiment shift that is experienced in the crypto space means that there tends to be an increase in volatility in the event of such major news breaks.

That said, it’s imperative to remain disciplined and not allow every single breaking news headline to trigger an emotional trading response. Markets tend to experience some sharp moves, particularly over short timeframes before correcting itself and assessing the broader economic fallout. The more seasoned long term investors will always see the benefits of sticking to a disciplined trading strategy than allowing themselves to be swayed by emotion in response to news flow.

For my part, the critical issues to observe over the coming days will be to ascertain if diplomatic relations between both parties resume, observe how the energy market reacts, and to check if broader financial markets are indeed pricing in an elevated level of uncertainty going forward. All three could impact both asset markets and crypto markets in significant ways.

As ever, such developments can present opportunities as well as challenges and traders would be wise to stay informed, use discipline and appropriate risk management, and refrain from emotional trading.

How do you think rising geopolitical tensions will affect the crypto market? Do you think Bitcoin is acting as a safe-haven asset or do you think that investors will shy away from risk assets in light of growing tensions?

‍#CryptoMarkets #GateSquare