Markets reached fresh all-time highs this week as geopolitical tensions subsided, with both the S&P 500 and Nasdaq gaining about 5% year-to-date.
However, the weekend's Middle East conflict revealed crypto's distinct sensitivity to global events, highlighting the 24/7 nature of digital assets in an interconnected world.
Crypto bears the brunt of weekend chaos:
When U.S. airstrikes targeted Iranian nuclear facilities, traditional markets were closed, leaving cryptocurrencies to absorb the full impact of geopolitical shock. $BTC plummeted 7% within minutes of the news, while $ETH lost nearly 20% over 48 hours as investors feared escalation around the strategic Strait of Hormuz - a chokepoint for 20% of global oil flows.
The crypto selloff reflected several compounding fears: potential disruption to global energy supplies, renewed inflationary pressures that could delay Fed rate cuts, and the unprecedented nature of direct U.S. involvement in Iranian nuclear sites. Unlike territorial or resource-based conflicts, the nuclear dimension amplified market anxiety about systemic risks.
Swift recovery as tensions ease:
As markets reopened, the feared panic selling across traditional assets largely failed to materialize. Instead, signs of de-escalation emerged - Iran's retaliatory strike on a U.S. base in Qatar caused no casualties, and crucially, no attacks occurred on oil infrastructure or the Strait of Hormuz.
Cryptocurrencies quickly reversed course, with Bitcoin flows turning positive with nearly $400 million in purchases Monday. By Tuesday evening, most crypto assets had recovered their weekend losses as President Trump announced China could continue purchasing Iranian oil, further easing supply concerns.
Three drivers propel summer rally:
- Geopolitical risk-off: Oil prices crashed from over $80 to around $65 per barrel, supporting both consumer spending and Fed rate cut prospects by containing inflationary pressures.
- Fed dovish outlook: The central bank's June dot plot still projects two rate cuts in 2025, with recent PCE inflation data at 2.3% year-over-year supporting the easing narrative.
- Tech momentum: Mega-cap technology stocks continue leading gains, with the sector up well beyond the broader market's 24% rally since April lows. First-quarter earnings validated massive AI investments despite tariff uncertainties.
Crypto's institutional evolution:
The recent volatility underscored crypto's unique position as the only major asset class trading continuously. While this creates vulnerability to off-hours shocks, it also demonstrates crypto's growing correlation with traditional risk assets as institutional adoption deepens.
The swift recovery suggests markets are becoming more efficient at pricing geopolitical risks rather than simply panic-selling.
Looking ahead:
Iran's potential withdrawal from nuclear non-proliferation agreements remains a key risk to monitor. However, the market's resilience in distinguishing between temporary geopolitical noise and fundamental trends suggests a maturing ecosystem capable of navigating complex global dynamics.
For crypto investors, the episode reinforces the importance of understanding how 24/7 markets respond to real-world events - often serving as the first indicator of global market sentiment before traditional exchanges open.... Show More
Bonjour à tous, depuis plusieurs mois j'ai plus de 25% de ma copie Greenbull qui n'est pas investi (et donc en cash, non rémunéré). J'ai contacté plusieurs fois le service client ainsi que mon gestionnaire de compte (ils en ont absolument rien à foutre). Je suis bloqué et je voulais savoir... Show More Translate
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Sun Nov 09 2025 01:26:57 GMT+0000 (Coordinated Universal Time)
