The US-Israel conflict with Iran has continued since last Saturday. Since the crypto market’s slump on the first day of the attacks, this digital asset’s market capitalization unexpectedly increased on the third day.
In an interview with CNN, US President Donald Trump warned that the attack on Iran will enter a greater phase.
Trump’s warning of a “big waver” once again shook the economy. Not even one hour later, gold and silver lost $1.1 trillion in combined market cap. Bull Theory reported that gold fell 2.05%, with $750 billion in outflows. Silver took a deeper nosedive, with a 7% or $370 billion decrease.
The capital moved to digital assets. Bitcoin surpassed $69.000, a 5% increase in less than one hour. Ethereum also reclaimed the $2.000 level, rising 5.8%. In total, Bull Theory recorded that the crypto market gained $100 billion in 45 minutes.
Precious metals and cryptocurrencies’ contrasting performances shocked many investors and analysts. This is because people generally assume that gold’s value will be higher during geopolitical tension.
In reality, precious metals experience high selling pressure, while cryptocurrencies rise in value.
In less than a week, crypto has exhibited great volatility. Bitcoin even rose and fell thousands of dollars in the span of days. As a trader, learn how to take advantage of volatility in the article Scalping Crypto Is: A Fast-Paced Trading Strategy to Profit From Market Volatility.
