THE WAR + BITCOIN + IRAN + ISRAEL and THE BITCOIN PRICE & MARKET SITUATION
A drop to 62k unfolded, as few predicted, amidst heightened media coverage of the Iran threat over the past three days. Typically, such news might fade quickly, but not this time.
Recently, Iran deployed drones and initiated attacks on Israel, marking the beginning of what could escalate into a major conflict.
Should the USA reinforce Israel, Iran has threatened to target US troops in the Middle East. This could provoke a US counterattack, potentially triggering a global conflict. Historically, markets have suffered during wars. Yet, with current rising inflation rates in the US, we might witness a different economic response. The necessity for the US to finance war efforts may lead to increased money printing, causing the US Dollar to plummet. This would likely drive people to secure their savings in assets, though such effects might only become apparent after the war impacts the economy.
Currently, we're waiting to see the US's response. If war is declared, all markets could see further declines. For #Bitcoin prices might drop to 58k or even as low as 52k before gradually recovering.
This scenario mirrors the market dynamics during COVID in 2019, which also eventually led to a robust recovery and new highs. For those holding Bitcoin, this might offer more security than maintaining liquidity in fiat currencies. From a financial (not trading) perspective, it might be wise to invest in more Bitcoin. Your future self could be grateful.
#BTC 's recovery will likely be slow, spanning weeks. It’s wise to be patient and avoid selling at a loss, unlike those who purchased at the 66k peak in the last cycle and sold at 15k before the market rebounded.
For now, monitor the market’s recovery. Depending on its movement, you might choose to sell at break-even to minimize risk or continue holding if the market appears to peak. If the downturn persists, consider buying more. :D
I anticipate that the supply shock on the upcoming halving day will foster some recovery as demand returns.
GD LUCK
