Recent Bitcoin (BTC) Price Drop Has Silver Lining. Why Does It Matter?

News
Thu, 01/09/2020 - 05:59
Alex Dovbnya

The price of Bitcoin (BTC) witnessed a painful five percent drop after Trump's retreat but this is a positive development for the top cryptocurrency

Cover image via www.rt.com
Contents

The Bitcoin (BTC) price dropped by more than five percent after US President Donald Trump announced his decision to de-escalate the military conflict between the US and Iran in his highly-anticipated address to the nation. However, according to Jeff Dorman, the CIO of cryptocurrency asset management firm Arca, this a positive sign for the top cryptocurrency that is becoming a macro asset. 

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Bitcoin's ambidextrous nature   

In his tweet, Dorman states that Bitcoin is an ambidextrous investment solution. While it's not correlated to assets in the short-term, the Iran imbroglio proved that BTC can indeed act as a safe haven during the times of geopolitical unrest. 

He further explains that the cryptocurrency could be a win-win solution for those who expect a recession because it has tech on top of its allure for doom-laden investors. Buying gold and shorting stocks didn't work at the dawn of the last decade who expected another downturn of the stock market but BTC might be their perfect bet this time around. 

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Is Bitcoin digital gold? 

Cryptocurrency data provider Messari has taken an in-depth look at Bitcoin's price performance during the escalation of the US-Iran conflict and suggested that BTC can indeed act as digital gold.

image by @MessariCrypto

While critics in the likes of economist Alex Krüger were quick to dismiss any safe-haven narrative, it's hard to deny the fact that the price of BTC surged by 21.7 percent due to the fears that the confrontations between the two countries could the start of another war. 

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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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