Bitcoin

EM instability often triggers capital flight to USD-denominated assets, strengthening the dollar and weakening risk assets like crypto. However, Bitcoin's narrative as 'digital gold' could see a delayed bid if EM investors seek non-sovereign stores of value. The high BTC dominance (above 57%) suggests capital is already rotating into Bitcoin from altcoins, but this EM shock may accelerate that rotation or cause broad liquidation if liquidity dries up.

A fresh wave of political turmoil is derailing investor bets across emerging markets from Latin America to Eastern Europe.