Bitcoin Price Jumps Five Percent as Trump Strike Escalates US-Iran Tensions

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Fri, 01/03/2020 - 07:06
Alex Dovbnya
Bitcoin and gold prices spike as demand for save-haven assets grows due to the escalating tensions between the US and Iran
Cover image via 123rf.com
Contents

Shortly after plunging below the $7,000 level for the first time in 2020, the Bitcoin price made a U-Turn and surged by more than five percent, currently changing hands at $7,216. This sudden spike came shortly after US President Donald ordered an airstrike that killed Iranian general Qassem Suleimani, thus significantly escalating the US-Iran tensions and raising fears of a new war.

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Bitcoin and gold surge 

To no one's surprise, Peter Schiff's loud statement that Bitcoin was already the worst-performing asset of the decade turned out to be a bit of a stretch. BTC has already rebounded less than a day since the gold bug's doom-laden tweet riled up the cryptocurrency community.     

This time around, Bitcoin rose in tandem with gold. The shiny metal has just reached its highest level in almost four months, Bloomberg reports. Considering that January is historically the best year for gold, it could potentially touch $1,600, its five-year peak, as soon as this February.

image by bloomberg.com

Meanwhile, oil prices are also on a roll. Brent crude has surged by more than four percent as the result of the strike, currently trading at $68.39 per barrel.       

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The safe-haven narrative

The latest Bitcoin move plays right into the hands of those who are certain that Bitcoin can act as a safe haven asset amidst global unrest. This became one of the most predominant narratives within the crypto space when the US-China trade war reached a tipping point back in May. The BTC price surged by a whopping 40 percent in only ten days after Trump imposed a 25 percent tariffs on $200 bln worth of Chinese goods on May 5. 

Economist Alex Krüger believes that the fact that the Iran news could push BTC higher is "absolute nonsense."

However, he believes that price speculators might indeed lead to another bullish move.  

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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