On March 4th, Goldman Sachs CEO David Solomon stated that financial markets have not yet fully absorbed the impact of the US-Iran conflict and that the cryptocurrency market may face further downward pressure in the coming weeks. According to Reuters, Solomon was surprised by the “moderate” market reaction to the Middle East conflict but emphasized that it will still take “a few weeks” for the markets to digest the short-term and medium-term effects of the event.
Solomon pointed out that crypto market volatility is largely influenced by oil prices, especially after Iran closed the Strait of Hormuz, making oil supply stability a key variable. He believes that unless geopolitical tensions directly impact economic growth, markets typically do not react violently immediately. However, due to war-induced risk aversion, the US dollar has strengthened, leading to significant sell-offs in cryptocurrencies and overall market pressure.
The US-Iran conflict has now entered its fourth day. President Donald Trump confirmed the killing of Iran’s Supreme Leader, which caused a sharp decline in the crypto market. Israel also launched airstrikes against organizations involved in Iran’s next Supreme Leader election, further escalating regional tensions.
Solomon emphasized that since the outbreak of war, the US economy has remained fundamentally stable, with strong monetary policies helping to maintain economic resilience. However, the impact of the war still needs to be monitored. He warned investors that short-term market volatility may continue, especially given the high risk of fluctuations in crypto assets.
Overall, the US-Iran war and the flow of global risk-averse funds are exerting dual pressure on cryptocurrency prices. Investors should closely monitor geopolitical developments and the US dollar trend to assess potential market rebounds or declines.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Geopolitical Turmoil! Dalio Declares "Gold is the Only True God," but Its Safe-Haven Performance Trails Bitcoin
As geopolitical tensions in the Middle East escalate, Bridgewater founder Ray Dalio questions Bitcoin and reaffirms gold as the preferred safe haven. Nevertheless, gold prices fell accordingly, while Bitcoin only experienced a slight correction, indicating that the correlation between the two is weakening. Dalio doubts Bitcoin's transparency and future risks, but he still maintains a small allocation of Bitcoin for diversification.
区块客28m ago
WuBlockchain Space: Is the accusation that "Jane Street manipulates Bitcoin" just a conspiracy theory?
The WuBlockchain Space program analyzed allegations of Jane Street manipulating Bitcoin prices via ETFs and derivatives. Guests argued that claims of "crypto harvesting" are conspiratorial, with sell-offs reflecting normal market activities rather than intentional manipulation. Recent crypto price volatility is attributed to market structure, liquidity, and macroeconomic factors rather than fear, uncertainty, and doubt. Investors are advised to be cautious of speculative interpretations.
TapChiBitcoin1h ago
Don't cut losses before dawn! K33 Report: Bitcoin has entered the "extremely oversold zone," and selling now makes no sense
K33 Research Institute points out that Bitcoin has now entered an extremely oversold zone, with technical indicators showing bottom signals. Despite the pessimistic market sentiment, selling may not be wise, as institutional investors have reduced their holdings, and Bitcoin's stability has increased under geopolitical influences. The report believes the worst is over, and the current is a buying opportunity for rational investors.
動區BlockTempo1h ago
Gate Institute: Under wartime conditions, BTC's trend remains stable with a slight upward bias, and volatility stays high
Latest data shows that the implied volatility of BTC and ETH remains high, with BTC at the 91% percentile, indicating that the options market expects short-term volatility to stay elevated. Large transactions in BTC and ETH are also active, and the Gate platform has updated its options VIP fee structure, reducing trading costs, which is especially advantageous for beginners and growing users.
GateResearch1h ago
K33: Bitcoin enters an extreme weekly oversold zone, with selling pressure easing and a potential for a temporary rebound brewing
The K33 analysis report indicates that Bitcoin has entered an extremely oversold zone after experiencing selling pressure. Recently, selling pressure has eased, and the market shows signs of stability. Historical data shows that Bitcoin often rebounds after an extreme bearish cycle, although it takes time to form a bottom. However, overselling and supply recovery suggest a rebound opportunity. Nevertheless, the options market still exhibits a strong bearish sentiment.
GateNews1h ago
