Singapore-based crypto investment company QCP Capitalmade important statements about the impact of recent geopolitical tensions in the Middle East on financial markets. As the tension between Israel and Iran increased, there were harsh movements in the cryptocurrency market. Despite this, it was emphasized that investors’ interest in risky assets continues. QCP Capital stated that these short-term fluctuations should not distract investors from the big picture.
The Impact of Geopolitical Tension in the Middle East on the Cryptocurrency Market
While Israel launched a ground operation against Lebanon last week, Iran responded yesterday with more than 180 missiles. However, the effects of this development on traditional financial assets were quite limited. S&P 500 index While it decreased by 1 percent, WTI crude oil prices increased by 2 percent. Today’s price movements did not create a major change as a continuation of these events.
On the contrary cryptocurrency market faced a much harsher impact. Bitcoin (BTC) 
$61,635It found support at the level of 60 thousand dollars with a 4 percent loss of value, but it is evaluated that it may drop to 55 thousand dollars if the tension escalates further. In contrast, QCP Capital stated that this selling wave was shallow and investors still showed demand for risky assets. It was stated that investors should focus on the long-term picture rather than focusing on short-term fluctuations.
Factors Directing China and the Global Economy
In addition to geopolitical developments, the situation in the Chinese economy also stands out as a striking factor. QCP Capital, Central Bank of ChinaHe compared the policies of the (PBoC) to Japan’s fight against deflation in the 1990s. At that time Bank of Japan (BoJ) lowered the interest rate, switched to a negative interest rate policy and initiated the monetary expansion program, which was considered innovative at that time.
Similarly, increased liquidity and potential fiscal support measures in China could support the prices of the country’s assets. This situation will have a positive impact on global markets and cryptocurrencyIt is expected to lead to increased demand for risky assets, including s.
Finally US Federal Reserve Recalling that (Fed) Chairman Jerome Powell made a statement in which he supported the expectation of an interest rate cut in 2024, QCP Capital predicted that asset prices will remain strong until 2025 as the largest central banks around the world begin the interest rate cut cycle. It is anticipated that changes in both the Fed’s and PBoC’s interest rate policies will continue to be an important support element for global markets.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
