I went to bed Friday evening only to see that prices went extremely red. They had been red already, but I immediately understood that something had happened. It kind of reminded me about the morning I woke up to red prices, and I knew that Russia had invaded Ukraine. So, the markets normally respond to such things in extreme ways, especially the crypto markets. But, why is that?
Have you ever thought about the word FUD? We normally speak of FUD when some troll on Twitter is spreading all sorts of information about projects to cause fear, uncertainty, and doubt about a project. Of course, asking valid questions isn't FUD, it is research. But, there are times when people spread false information about projects to make people sell... simply because they hate the project, or because they are a competitor, or because they want to buy more at cheaper prices.
But, notice the word in the middle of FUD... uncertainty.
Uncertainty causes immediate reactions in the markets...
As Iran missiles and drones against Israel, it causes uncertainty in many ways. What will happen now? Will Israel respond? Will the United States be a part of a future response, or will Israel be left on its own? Will the Middle East turn into one giant war zone?
We ask so many questions... and it is also pre-programmed that people sell crypto as such events happen. That is why we can see that the price decrease we saw for many tokens already returned to where they were before the missiles were sent. Other tokens still suffer, but uncertainty for sure plays a vital role in all of this.
Where are we going from here? Who knows... :)