The crypto market faced a sharp correction amid news of an Iranian drone attack on Israel and some concerning red flags from the U.S. stock market (with its own distinct drivers).
Although geopolitical events are not tied directly to cryptocurrencies, traditional markets are closed on weekends, leaving the impact on other asset classes unclear until Monday.
As global geopolitical tensions rise, the cryptocurrency market, particularly Bitcoin, finds itself in a precarious position, facing a significant test of its resilience, which appears to challenge the widespread belief that 'chaos is good for Bitcoin.'
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Historically, however, geopolitical events have had only short-term consequences for Bitcoin's price, as André Dragosch showed in a recent thread.
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The disconnect between Michael Saylor’s optimism and the current market realities highlights the complex interplay between Bitcoin and global events. While often viewed as a hedge against geopolitical instability, Bitcoin's price is influenced by various factors, including investor sentiment and market dynamics.
"The market was in easy mode, but right now clearly there's too much leverage and market makers are having a field day exploiting high emotions and degenerate behaviour. My strategy is to wait for the right moment and not to rush it. And if i am wrong? Well at least i have protected my capital and i can play catch up later." (@HoneybadgerC on X)
Tactical trading is hard. Risk management and position sizing are key. Without proper risk management and position sizing, you will suck at trading on a distance.
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