INTRODUCTION.
On Saturday the 13th of march, there was a sudden drop in Bitcoin’s price and it caused the entire crypto market to crash after it. It was sudden and also timed with when the IRANIAN FORCES dropped ballistic missiles on ISRAEL’s territory. An event that has caused the occurrence of a black swan event to occur in the crypto markets. For educational purpose a black swan event in crypto is when an asset significantly drops in price over a very short period of time. Knowing that now you would agree that we actually experienced a degree of the significant drop and very quickly. This article will unravel the hottest story right now and how it may impact traders. If you are not too busy… let’s delve into the story.
THE BLACK SWAN EVENT.
As earlier said in the introduction, we had a huge price drop for $BTC, from about $70k all the way down to $60k all within a day and just an hour apart from the descent all the way down to the point of resistance at the $60k level. A drop of 7% for bitcoin in less than an hour and double digits for the alt coins in general. About $130 million dollars was wiped out from the long position trades on exchanges. Could be more when full data is soured.
Some analysts claim that just before the last bull run, covid hit the world and caused many catastrophes to the people and assets alike. Bitcoin suffered a surge to the downside but later ended being favorable as Bitcoin hit the next all time high months from the pandemic lock down.
They are assuming we are about to see history repeat itself.
Some other social media users claim that IRAN, the nation introduced to us in the introduction, may have opened a short position and announced they were going to launch a missile attack on ISRAEL . Then after they took profits they announced they were done and Bitcoin went back up from $60k to $65k… hilarious.
WHY THIS WAR? Iran-Israel what do we know.
What is the real story behind the attacks we have seen which has brought about so much unrest to the peace of the world.
Iran launched a drone attack from Iranian soil into Israeli territory. But what many don’t know is why.
On April first there was a suspected Israeli airstrike in Syria that killed 12 people including two Iranian generals in a consulate building. Since then Iran has made threats against Israel. And they finally responded with dozens of drones launching missiles into Israel borders. There were damages but Israel has announced they were able to disarm hundreds of the missiles with the help of their allies. Stating only minor damages to infrastructure and no life lost.
Major concerns from experts denote the conflict between Hamas and Israel will now grow into a bigger regional war.
WHAT ISRAEL HAD TO SAY AFTER THE ATTACK WILL SHOCK YOU.
The spokesperson for Israel Defense Forces Daniel Hagari said and I quote “This is a severe and dangerous escalation, our defenses and offensive capabilities are at the highest level of readiness”. This is a resounding warning to Iran that they are ever ready for what we all don’t want… WAR!!!
Then Iran took to social media to warn the US not to get involved. President Joe Biden of the United States also returned to Washington that night to meet with the national security council.
White House then responds to the attacks against Israel that “The United States will stand with the people of Israel and support their defense against these threats from Iran”. If you stick around social media well then you will find out more updates about the conflicts in the middle east.
HOW DOES THIS WAR AFFECT BITCOIN AND CRYPTO?
It seems history tends to always repeat. And some traders are already planning on going all in. They believe this is the kind of news they have been waiting for. It’s an avenue to shake out the weak hands and an opportunity to go all in.
It doesn’t mean that this will happen but it’s a kind of trend traders see and tend to follow. If you are bullish and it goes your way then be ready for the next all time highs in a few months.
Conclusion.
While this is still a developing story, I would advise you to stay up to date from time to time.
Information in the right hands and at the right time is a weapon. Stay tuned to this channel for more timely updates. Don’t forget to follow crypto university for more updates like this on our socials. See you on the next one.