David Solomon, CEO of Goldman Sachs, has said the markets have yet to take in the effects of the current U.S.-Iran war, which could take weeks. This suggests the crypto market crash could further deepen over the next couple of weeks.
Goldman Sachs CEO Signals Steeper Crypto Market Crash
According to Reuters, Solomon said on Wednesday that he was surprised at the “benign” reaction in financial markets to the conflict in the Middle East and that it may take a “couple of weeks” to fully digest the effects.
This is particularly interesting, seeing that the start of the U.S.-Iran war triggered a crypto market crash. This saw billions of investments liquidated. However, the CEO has downplayed this effect.
He said much of the market moves is driven by oil prices, and whether oil can flow freely through the Strait of Hormuz after Iran’s closure. Solomon explained that the market generally does not react strongly to geopolitical issues unless they directly affect economic growth.
Stock markets around the world have fallen. Meanwhile, the US dollar has risen as investors have sold riskier assets and moved into traditional safe havens, leading to a crypto market crash.
U.S.-Iran War Enters Day 4
The crisis in Iran is on its fourth day as tensions continue to rise in the region. The US President Donald Trump recently said that Iran’s air force and navy were “knocked out.” The strikes were reportedly on Iranian leadership targets. Israel also attacked a compound of a group that is involved in electing the next supreme leader of Iran.
The crypto market crash worsened after President Donald Trump confirmed that Iran’s supreme leader had been killed. This happened on Saturday after the US and Israel attacked the country. After that, different attempts to change the leader have been met with opposition from overseas military forces.
The CEO of Goldman Sachs reiterated that the US economy is pretty much in balance since the war started and that its effect is yet to be seen. The strong monetary policy is also what is keeping it strong.
Source: https://coingape.com/goldman-sachs-ceo-predicts-weeks-of-crypto-market-crash-as-u-s-iran-war-continues/
