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- Goldman Sachs CEO says markets may need weeks to absorb war impact.
- Stronger U.S. dollar and oil risks are pressuring crypto prices.
- Further volatility possible if energy supply disruptions intensify.
Global markets may not have fully priced in the fallout from the escalating U.S.-Iran war, according to David Solomon, CEO of Goldman Sachs. His warning comes as the crypto market crash deepens, raising concerns that further downside could unfold in the weeks ahead.
Speaking this week, Solomon said he was surprised by what he described as a relatively muted reaction across financial markets given the scale of the conflict. He suggested it could take “a couple of weeks” before investors fully digest the short- and medium-term implications.
Markets Appear Calm — For Now
The initial outbreak of hostilities between the U.S. and Iran triggered a sharp sell-off in digital assets, wiping out billions in leveraged positions. Bitcoin and major altcoins fell as investors rushed to reduce exposure to risk assets.
Yet, broader financial markets have not shown panic on the scale some analysts anticipated. Solomon noted that geopolitical events typically move markets only when they materially threaten economic growth. So far, he implied, investors are still assessing whether that threshold has been crossed.
A key variable remains oil. The potential disruption of supply through the Strait of Hormuz — a critical artery for global crude shipments — could shift the equation quickly. Energy prices often act as a transmission channel from geopolitical shocks to inflation and broader economic stability.
Dollar Strength Pressures Crypto
While equities have wavered, the U.S. dollar has strengthened as investors rotated into perceived safe-haven assets. That shift has added pressure to cryptocurrencies, which tend to struggle when liquidity tightens and risk appetite fades.
The ongoing conflict has already intensified volatility. After President Donald Trump confirmed strikes on Iranian leadership targets, digital assets saw renewed selling. Markets reacted sharply to reports that Iran’s supreme leader had been killed, compounding uncertainty.
Stock indices across major economies have also slipped, reflecting growing caution among global investors.
A Delayed Market Reckoning?
Solomon emphasized that the U.S. economy remains broadly stable for now, supported by monetary policy and underlying resilience. However, he cautioned against assuming the current calm will hold.
Also Read: Iran Crypto Trading Crashes 80% in 3 Days — Is Capital Flight Underway?
If oil flows are disrupted or regional tensions expand, risk assets — including crypto — could face another wave of selling. With the war entering its fourth day, traders are bracing for headline-driven volatility.
For now, markets appear to be waiting. But as Solomon suggested, the true economic impact may not be clear for several weeks — leaving the crypto market vulnerable to further swings.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
