Saturday night cryptocurrency markets heavily sold off on the news that Iran had striked Israel with drones. Above is the 1-hour chart at noon UTC Sunday April 14. Some cypherpunks are confused as to why cryptocurrency prices are affected by war in this situation. And the answer is that Wall Street considers crypto to be a tech stock, especially after the US Bitcoin ETF. And at the highest end of the risk spectrum. Therefore, considering the traditional markets like the NASDAQ are closed, the leveraged traders short sell risk where they can in the only 24/7 market.
Here’s what you need to know about Iran’s attack:
1) It was a response to Israel striking Iran’s diplomatic office in Syria weeks earlier, killing a few high level officials.
2) Iran warned the US through private channels what it’s response would be. [Source: Forexlive]
3) Iran tweeted on official channels indicating that it did not want further war, and that “the matter can be deemed concluded”
Here’s what you need to know about Biden’s response:
Biden administration told/leaked to Axios news that it told Israel’s prime minister that the US wouldn’t back a response,
President Biden told Israeli prime minister Benjamin Netanyahu during a call on Saturday that the U.S. won’t support any Israeli counterattack against Iran, a senior White House official told Axios.
“I told Prime Minister Netanyahu that Israel demonstrated a remarkable capacity to defend against and defeat even unprecedented attacks — sending a clear message to its foes that they cannot effectively threaten the security of Israel,” Biden said. [Source: Axios]
The news is clear that both Iran and Biden wants a de-escalation of the conflict.
The crypto markets sold off heavily on the initial news, because it was the weekend and stock markets were closed. Bitcoin, Monero, and others had huge moves. Now some traders are likely short Bitcoin and many are wondering if this the perfect opportunity to buy the dip on the news of likely peace.
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