The Breakdown The Market Reaction to Iranian Bombing
Oct 3, 2024
Recent missile strikes from Iran have sent shockwaves through global markets, prompting shifts towards safe-haven assets. Notably, oil prices surged while Bitcoin struggled to maintain its safe-haven status. The evolving sentiment around Bitcoin reveals its transformation into a risk asset rather than purely a philosophical token. Meanwhile, the venture capital landscape post-crypto boom is examined, shedding light on startup survival amid market volatility and emotional reactions. Insights into the ExSAT Network highlight efforts to enhance Bitcoin's utility further.
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Market Reactions and Geopolitics
- The market's reaction to geopolitical events like the Iran-Israel conflict reveals investor sentiment.
- Traders try to price in the potential outcomes, from limited escalation to full-blown war.
Bitcoin's Dual Nature
- Bitcoin's reaction to geopolitical risks often involves an initial drawdown followed by recovery and outperformance of stocks.
- Its role as a 24/7 liquid asset sometimes outweighs its safe-haven status, especially for newer investors.
Bitcoin's Liquidity Premium
- Bitcoin's availability to sell during off-market hours contributes to its value.
- This liquidity is desirable even if some investors view Bitcoin primarily as a risk asset.