Global financial markets are under pressure from the escalating tension between the United States and North Korea. This situation is a bullish catalyst for Ethereum because it increases demand for safe haven assets and may induce retail investors in South Korea to move capital out of Korean stocks and into cryptocurrency.
Ethereum trading volume is dominated by the Korean won, and this gives it greater exposure to Korea than the other cryptocurrencies. As it stands, Ethereum may be the single best way for investors to hedge against the risk of geopolitical crisis in East Asia, especially as it relates to North Korea.
Capital Flight to Safety
In Asia, the Japanese Nikkei and South Korean Kospi indexes have reacted negatively to the war of words between Washington and Pyongyang, and asset classes traditionally seen as safe havens (such and gold and the Swiss franc) have increased in value. Cryptocurrencies can function as safe haven assets because they do not have a central authority, nor are they linked to any government.
Cryptocurrencies also lack a correlation with the equity markets that may be affected by negative news events. As the political tension intensifies,
Read more ... source: TheEthereumNews
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