The market does what it always does when major geopolitics begins.
Fleeing to the dollar.
According to Reuters, after the start of the military operation by the USA and Israel against Iran, investors began to switch massively to the American currency. In two days, the DXY dollar index rose by approximately 2%.
The reason is simple and a bit banal.
When war is on the horizon, investors are not looking for profit. They are looking for liquidity and a safe haven. And the dollar still remains the main asset to which global capital flees in times of turbulence.
And here arises an awkward moment for the crypto market.
When the dollar sharply strengthens, risky assets usually come under pressure. Capital becomes more cautious, liquidity becomes more expensive, and the appetite for risk quickly evaporates.
The market is not only looking at the charts right now.
He is looking at the map of the world.
And the question now is not what $BTC will do tomorrow.
The question is what geopolitics will do.
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