The escalating conflict between Iran and Israel has sent ripples through global markets, triggering significant shifts in both digital assets and defence stocks. Let’s break down how this has impacted these and see who the biggest winners are during such events.
Crypto Market Reactions
The crypto market, known for its ups and downs, saw some drops after the news. Bitcoin fell below $62,000, losing about 3% of its value. Other cryptocurrencies like Ethereum, Solana, and Dogecoin also took a hit, dropping between 5% and 10%. Despite these drops, Bitcoin and other major cryptocurrencies usually bounce back quickly after such shocks.
Stock Market Impact
Global stock markets also felt the impact. Major indices in Asia, like Hong Kong’s Hang Seng and Japan’s Nikkei 225, dropped by 3.5% and 6.5%, respectively. U.S. stock futures also fell, showing broader market worries. Oil prices spiked by up to 7% due to fears of supply disruptions.
Defence Stocks: The Big Winners
Unlike the broader market, defence stocks often benefit from geopolitical conflicts. Companies like Lockheed Martin, Northrop Grumman, General Dynamics, and Raytheon Technologies saw their stock prices rise after the attack. These companies are key players in defense and military tech, making them well-positioned during times of conflict.
- Lockheed Martin (LMT): Stock rose by about 2%.
- Northrop Grumman (NOC): Stock increased by around 1.8%.
- General Dynamics (GD): Stock rose by 1.5%.
- Raytheon Technologies (RTX): Stock increased by 1.7%.
Digital Assets: A Resilient Investment
Despite the initial drop, digital assets like Bitcoin are expected to recover quickly. The global Bitcoin adoption rate is around 4.7% in 2024, showing strong growth potential. As more people look for alternative investments during uncertain times, Bitcoin and other cryptocurrencies continue to gain popularity.
The bottom line is that geopolitical tensions can cause market volatility, but they also highlight the resilience and potential of certain sectors. Defence stocks are clear winners, benefiting from increased government spending on military and defence. Meanwhile, digital assets, despite their initial volatility, show strong recovery potential and growing adoption.
Staying informed and agile is key during these times. Whether through traditional defence stocks or innovative digital assets, understanding market dynamics helps in making better investment decisions.
If you’re new to this domain and would like to learn more, connect with us to explore Blockchain and Crypto in a private online session or join our workshops in Dubai, UAE, at connect@wicarabia.com.
By Zina Ashour
