Geopolitical tensions continue to escalate, wreaking havoc on markets… but Bitcoin emerges king.
War Heats Up
Since war broke out 16 days ago, geopolitical tension has seemed to only escalate with each passing day. This has started to cause an increasing degree of volatility in financial markets, as well.
Given the location of the war, oil has become front and center. As geopolitical concerns ramp up, so does the price of oil.
As the price of oil continues to move higher, stock market volatility does as well (with a strong correlation). Tension up = Oil up = VIX up = Equities down.
Not only that, but this move in oil has also driven the bond market lower, too. As oil is a critical component to nearly all of modern life, higher energy prices feed into all facets of modern life.
Remember, bond yields move inversely to the price of the bond. As US Treasury yields climb (due to higher energy prices causing higher inflation), that means that US Treasury prices are moving lower.