Once again, the Middle East is in the spotlight of world attention. Last night and early this morning, Saturday, October 26, the State of Israel attacked military sites in Iran.
According to information published by the press (since there are no official reports so far), two soldiers from that country lost their lives.
There were no reports of major damage to oil or nuclear facilities (a matter of great concern due to the consequences it could have on the global economy).
There have been no promises of an immediate response from Iran. It is apparently pursuing a communication strategy of downplaying what happened. The hypothesis that Iran is planning a surprise counterattack without warning cannot be ruled out.
This growing tension in the Middle East has had an impact on the price of bitcoin (BTC), which, days ago, threatened to resume its upward trend.
For the moment, the ‘uptober’ (bullish October) that many expected is being halted both by this event, which is causing investors to enter into caution mode, and by rumours that Tether (the company issuing the stablecoin USDT) is being criminally investigated by the United States Justice Department.
When wars break out in areas of high geopolitical relevance, such as the Middle East, investors tend to opt for caution. The main reason is that these events increase global uncertainty, leading many to seek refuge in traditionally safe assets, such as gold, the US dollar or Treasury bonds.
Although Bitcoin is often called “digital gold” by enthusiasts, most of the market still perceives it as a risky asset, whose price can experience strong volatility in situations of high tension. Therefore, faced with the fear of an escalation that would unleash unpredictable economic consequences, many choose to get rid of their BTC and seek stability in traditional safe havens.
The strategic importance of the Middle East also plays a key role. This region is one of the world's largest oil producers, and any threat to energy infrastructure can trigger sharp movements in the markets.
In conflict situations, the possibility of oil prices skyrocketing is not mere speculation; it is a reality that impacts global costs of transportation, manufacturing and even commodities. With the cost of living generally rising, investors are expected to move away from assets considered risky and hold cash or safe haven assets.
However, not everyone is overcome by fear. There is a segment of Bitcoin enthusiasts who see these price drops as a golden opportunity.
For example, as CriptoNoticias has reported, the total number of Bitcoin whales is at a 3-year high. A “whale” is any entity that owns more than 1,000 BTC.
For these long-term-minded investors, these declines represent “sales” in the market as they are confident that BTC will appreciate in value. Amid the uncertainty, their focus remains on Bitcoin’s disruptive potential as an alternative to traditional financial systems and, eventually, as a safe haven that will compete with gold.
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