For all crypto traders, October is the most anticipated month of the year. To give you an idea, over the past nine years, Bitcoin has averaged 23% gains in October. So much so that in the crypto market, October is well known as ‘Uptober.’
However, the reality is that new geopolitical conflicts threaten to put a temporary halt to the Uptober event that all crypto traders were expecting. Just as the month began, Iran fired around 200 ballistic missiles at Israel, which has threatened a new round of large-scale attacks in the Middle East.
Why are geopolitical conflicts important for our crypto traders? 🤔
While Bitcoin has gained ground as a “reserve asset” against inflation, the crypto market has historically performed poorly during times of geopolitical conflict.
But the truth that few will tell you is that investors concerned with high geopolitical risks still turn to traditional instruments rather than cryptocurrencies, causing the latter to suffer during geopolitically sensitive moments.
As a historical reference, Bitcoin prices typically lose nearly 20% of their value, on average, following moments of large-scale geopolitical tension.
What does this mean for traders like you? 🛡️
The cryptocurrency market has been affected by geopolitical conflict outbreaks; however big players such as BlackRock have recently highlighted Bitcoin’s ability to serve as a hedge in the future under these moments of tension.
This month, the firm stated that Bitcoin can diversify against “geopolitical tensions, debt and deficits, and increased political instability.”
Are expectations for a new Bull Market collapsing? 🐂
Just as expectations for a new Bull Market in the crypto market were reaching their peak, geopolitical conflicts have crashed the market and dashed the hopes of many investors.
However, historical data shows that the crypto market has historically performed very positively right after major geopolitical risk events. So, if conflicts do not continue to escalate and stabilize, the crypto market may start to see positive days ahead.
How Should You Navigate this Market? 🌊
In these uncertain times, BitFunded is here to offer you a secure and profitable trading opportunity. With our Trading Challenge, you can gain access to as much as 100,000 USDT in funded accounts without risking your own capital.
Whether you’re navigating geopolitical turmoil or chasing the next bull run, BitFunded gives you the tools to succeed.