Part 9/14:
Risks such as conflicts in Ukraine, Iran tensions, or China-Taiwan relations can significantly impact crypto markets by increasing uncertainty. Notably, an escalation between China and Taiwan—especially given Taiwan’s vital role in global microchip manufacturing—could have global repercussions.
Major tech stocks reliant on chips from Taiwan would plummet in such scenarios, dragging down crypto due to their close correlation with technology and macroeconomic health. Such geopolitical tensions tend to create a risk-off environment, leading to prolonged bear markets if they persist.
Recognizing and Interpreting Cryptokatalysts
Cryptocatalysts can be temporary or permanent, each with different implications.