[Analysis] "Crypto market catches its breath amid tensions... Calm before the storm"

Amid escalating geopolitical tensions in the Middle East, it has been analyzed that the cryptocurrency market is remaining cautious while attempting to readjust risks.

On the 20th (local time), Singapore-based cryptocurrency trading firm QCP Capital stated on X (formerly Twitter), "Market participants are digesting the geopolitical conflict and readjusting risks. Volatility is just on pause, not gone."

QCP analyzed, "The gold rally following the Israeli airstrike has subsided, and oil prices are holding steady around $75. The market remains highly sensitive to Israel-Iran risks." They also added, "The dollar's weakness reflects the market's interpretation that the possibility of U.S. military intervention has increased."

Defensive moves are being detected in the derivatives market. QCP noted, "In the Bitcoin and Ethereum options markets, investors are preparing hedges in case prices decline. Also, expected volatility in Ethereum for June is lower than for September, which can be interpreted to mean that, in the short term, the likelihood of major events has decreased."

They continued, "While the crypto market appears quiet on the surface, risk sentiment is shifting," and predicted, "Unexpected news, economic changes, or extreme events could again bring significant volatility to the market."