The geopolitical shocks in the style of Trump, why do they always amplify crypto volatility
Trump-related geopolitical actions share a common characteristic: extremely high uncertainty. The market's greatest fear is not the outcome but the unknown path. For the crypto market, this uncertainty is further amplified because cryptocurrencies themselves are highly liquid, leverage is abundant, and emotional participants make up a large proportion. Once news of a surprise attack emerges, three immediate reactions are usually observed: First, risk assets collectively retreat; Second, derivatives markets see liquidation and increased volatility; Third, emotional traders quickly exit the market. But from a medium-term perspective, as long as the conflict does not escalate into a global systemic war, the crypto market often recovers or even rebounds. The reason is simple: compared to traditional financial systems, the crypto market has lower "institutional dependence" on political games. Trump's tough stance may accelerate discussions on de-dollarization worldwide, which is precisely the long-term narrative foundation for assets like Bitcoin. Short-term panic and long-term logic are not contradictory; they only test which time dimension participants are standing on#特朗普突袭委内瑞拉
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The geopolitical shocks in the style of Trump, why do they always amplify crypto volatility
Trump-related geopolitical actions share a common characteristic: extremely high uncertainty. The market's greatest fear is not the outcome but the unknown path. For the crypto market, this uncertainty is further amplified because cryptocurrencies themselves are highly liquid, leverage is abundant, and emotional participants make up a large proportion.
Once news of a surprise attack emerges, three immediate reactions are usually observed:
First, risk assets collectively retreat;
Second, derivatives markets see liquidation and increased volatility;
Third, emotional traders quickly exit the market.
But from a medium-term perspective, as long as the conflict does not escalate into a global systemic war, the crypto market often recovers or even rebounds. The reason is simple: compared to traditional financial systems, the crypto market has lower "institutional dependence" on political games.
Trump's tough stance may accelerate discussions on de-dollarization worldwide, which is precisely the long-term narrative foundation for assets like Bitcoin. Short-term panic and long-term logic are not contradictory; they only test which time dimension participants are standing on#特朗普突袭委内瑞拉