Prominent economist Alex Krüger has finally agreed that Bitcoin (BTC) now has a clear risk-off component, meaning that the top cryptocurrency can act as a safe-haven asset. In his tweet, Krüger conceded that the US-Iran conflict turned out to be "a game-changer" for BTC.
$BTC has had a clear risk-off component in 2020. Iran was a game changer IMO.— Alex Krüger (@krugermacro) January 27, 2020
Iran was a game-changer
Prior to that, he would deny that the Bitcoin price can be influenced by global events such as the US-China trade war and the Iran military confrontation.
As reported by U.Today, BTC would move in tandem with other macro assets such as oil and gold after every escalation of tensions between the two countries. On Jan. 8, the coin surged to $8,400 on the news about Iran attacking Iraqi military bases with US troops.
Notably, this Bitcoin rally faltered as soon as U.S. President Donald Trump made an announcement about de-escalating the situation with Iran.
Another test for BTC
The coronavirus outbreak that tumbled the Chinese stocks coincided with another price rally for Bitcoin. The leading cryptocurrency is now trading at $8,777, surging by nearly three percent on the day.
While Krüger still seems skeptical of the narrative that the deadly virus is behind another major BTC move, ADVFN CEO Clem Chambers believes that this could be the case. In his op-ed Forbes article, he said that he would be watching Bitcoin's price action 'like a hawk' as the coronavirus continues to wreak havoc across the globe.
"Bitcoin’s recent rally aligns with the assumption that Chinese demand for bitcoin because of coronavirus has driven the price," Chambers wrote.