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The Middle East war ignites the crypto world! The missile strikes between Israel and Iran have resulted in a $3 billion liquidation in the crypto market. Bitcoin is fighting to defend the $100,000 mark, while Ether has fallen below $2,400, causing a collective collapse among altcoins!
Why can war shatter the crypto world?
There are three reasons:
First is the liquidity crisis, Middle Eastern wealthy capital is urgently withdrawing, the redemption volume of the stablecoin USDT surged by 40% yesterday, and the exchange was almost subjected to a run.
Secondly, leveraged liquidation. According to Deribit data, 60% of the open contracts for Bitcoin have a leverage of more than 5 times. As soon as the war news broke, it directly triggered a chain liquidation.
Thirdly, there is the energy crisis. Iran is a major oil-producing country, and if the Strait of Hormuz is blocked, crude oil prices could double, putting inflationary pressure directly on risk assets.
However, the crypto world has not completely collapsed, and there are three reasons for this:
First, the ETF support, institutions such as BlackRock and Fidelity bought 1.2 billion dollars worth of Bitcoin yesterday against the market trend, with the daily average trading volume of spot ETFs accounting for over 55%, becoming a "lifesaver";
Secondly, the dark web ecosystem, the Ukrainian government received 127 million USD in aid through cryptocurrency, and the underground network in Gaza maintains communication using Bitcoin mining machines, while the essential needs in war-torn areas support the底价.
Thirdly, the market resilience; after experiencing multiple black swan events, crypto world investors' mentality has gradually matured, no longer blindly panicking.
During wartime, there may also be some investment opportunities.
For example, regarding stablecoins, Iran's largest exchange was hacked, and tens of millions of dollars in stablecoins were stolen. However, the transfer volume of USDT increased by 440% week-on-week, indicating that stablecoins have become a lifeline during wartime. Attention can be paid to the premium opportunities of USDT and USDC.
For example, privacy coins like Monero (XMR) and Dash (DASH) have seen a surge in demand as Middle Eastern users use them to bypass sanctions, but regulatory risks should be taken seriously.
There is also the energy coin. Iran is a major oil country. Once the energy supply chain is disrupted, BTC could become "digital oil," but the short-term risks are too high. Don't invest heavily; small capital allocation is advisable.
Remember: Don't FOMO, don't leverage, survive to wait for the bull market!