Key Takeaways

• More market liquidations for Gold traders, with over $1 trillion liquidated in the last 24 hours following Gold trading below $4,500.

• Bitcoin trades around the critical zone, and the price could see another market crash in the coming days if it trades below $60,000.

• A US-Iran war could trigger a financial crisis, according to experts, following the recent gold market crash that saw a 22% loss in a single day.

The past few weeks have been a wild ride for the financial market, following weeks of uncertainties and the war between the US and Iran increasing geopolitical tension, has had a rather negative effect on the financial space as Gold and BTC have seen prices crash to the downside, with speculation suggesting the market could see more downside for Gold and BTC in the coming days.

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Taking a critical look at the current price action of Gold, it is expected the market would have been a safe haven for traders, investors and institutions, rather the price of Gold has seen over 22% price crash from its all-time highs since the start of the war as price could potentially trade towards a low of $3,900 to $3,500 in the coming g days.

Such price action in Gold during current market uncertainties is beginning to raise significant concern among traders and investors, suggesting this isn’t a market correction but that the financial market could be entering a period of a massive institutional liquidity black hole.

Here are events in the coming days that could trigger a major shift in the financial markets, as traders and investors keep a close eye on developments.

Iran Threatens to Shut Down the Strait of Hormuz Completely

Energy prices continue to skyrocket since the start of the US-Iran war, as the speculation of potential peace-making is not close following recent attacks on energy refineries in the Middle East.

In the last few weeks, over 40 energy facilities have been “severely damaged” by the Middle East war, according to reports by the IEA. More than 40 energy assets across 9 countries, including oil, gas, refineries, and pipelines, have been hit, disrupting supply and raising risks of a prolonged global energy shock.

Iran warns it could strike more energy infrastructure if attacked, as Trump threatens to target its power plant.

Donald Trump has warned Iran to open the Strait of Hormuz or face more attacks, and the Iranian government has threatened to shut down the Strait of Hormuz completely, as this could potentially impact the financial market negatively. How would the price action of Gold and BTC react to current market uncertainties? 

GOLD and BTC Crashes as Market Opens with Liquidations

Source – Gold Price Action from CoinMarketCap

The price of Gold has crashed by over 22% from its all-time high in the last few weeks, and the price could see more market crashes in the coming days following the price wiping out over one trillion dollars from the forex market ahead of the new trading week.

With war ongoing, the market could see more downside for Gold and BTC, as the financial market is currently in a troubling phase where many experts are speculating on a potential inflation rise and a looming financial crisis.

While the market remains uncertain, traders and investors are encouraged to trade with caution, as bears are likely to take advantage of the market. 

FAQs

Why is the gold price crashing today?

The price of Gold has seen an over 20% price crash in the last few days, following uncertainties over the US-Iran war, as traders turn to Oil, which has been outperforming the forex market.

Why are gold and bitcoin dropping?

Gold and Bitcoin, despite strong market support, have failed to hold these zones, and the price is at risk of crashing lower in the coming weeks.

Is Gold price expected to rise or drop?

Gold price action is expected to trade lower towards $3,900 in the coming days, as the price failed to defend its $4,500 support following a weak market open.

How does oil affect Bitcoin?

Oil prices do not directly affect Bitcoin prices; however, a scarcity of oil could affect the global energy market, which could also affect Bitcoin mining, allowing demand for the crypto asset to grow as the price gains some momentum to the upside.

How do conflicts in the Middle East affect the oil industry?

The Middle East conflict has led to oil scarcity, with the recent US-Iran war closing the Strait of Hormuz, through which 20% of the world’s oil supply passes, triggering a global spike in oil prices. 

What will happen to crypto if the US attacks Iran?

Speculations are suggesting the price of BTC could go lower, but they have proven wrong as the price is rallying. Gold and Oil have seen strong price action over the last few days.

Related Read 

What Happens to Crypto if Oil Hits $200?

How Oil Supply Could Affect Crypto as Oil Eyes $100 per Barrels 

How Will Bitcoin and Gold React to the US-Iran War?

Bitcoin Crashes to $68k as Iran Threatens to Shut Down the Strait of Hormuz