{"id":7895,"date":"2020-01-20T16:52:39","date_gmt":"2020-01-20T14:52:39","guid":{"rendered":"https:\/\/forklog.media\/?p=7895"},"modified":"2020-01-20T20:05:05","modified_gmt":"2020-01-20T18:05:05","slug":"global-political-game-and-bitcoin-price","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/global-political-game-and-bitcoin-price\/","title":{"rendered":"Global Political Game and Bitcoin Price"},"content":{"rendered":"

In the crypto community and the society at large, there has been a long-running debate pertaining to whether Bitcoin can be defined as a protective asset along with gold, Japanese yen, Swiss franc, and U.S. government bonds.<\/span><\/p>\n

Some experts insist that the unique properties of the first cryptocurrency make it a safe haven for periods of geopolitical turmoil when turbulence on world markets is at its highest. Skeptics believe this assumption to be far-fetched and kindly remind the public of the instances when Bitcoin went up and down along with the S&P 500 or did not react at all to the volatility of indices or the price of gold.<\/span><\/p>\n

So, has digital gold truly matured to a protective asset status?<\/span><\/p>\n

Iranian Drama<\/b><\/h2>\n

The early days of 2020 were marked by a sharp aggravation of U.S.-Iran relations, which had a significant impact on financial markets.<\/span><\/p>\n

On January 3, against the backdrop of the attack on an Iraqi military base and the assassination of Iran\u2019s general Qasem Soleimani, traditional protective assets, gold, and the Japanese yen, rose in price. Bitcoin rallied immediately by almost $500 (more than 5%), returning to levels above $7,000.<\/span>\"Bitcoin<\/a><\/p>\n

Bitcoin market\u2019s reaction to Iranian conflict. Hourly <\/span><\/i>BTC\/USD<\/span><\/i><\/a> chart from Bitstamp provided by TradingView.<\/span><\/i><\/span><\/p>\n

On January 8 Iran launched several missiles at a U.S. military base in Iraq. The markets reacted immediately: oil and gold shot up and Bitcoin rose above the $8,400 mark. A single week of geopolitical turmoil saw Bitcoin growing by almost 20%.<\/span><\/p>\n

Soon Donald Trump <\/span>addressed<\/span><\/a> the American nation stressing that “the United States is ready to embrace peace with all who seek it.” He also emphasized that America is no longer dependant on Middle-Eastern oil and that the strike on targets in Iraq yielded no human casualties.<\/span><\/p>\n

\"Bitcoin<\/a><\/p>\n

Bitcoin reacting to specific events within the conflict<\/span><\/i><\/span><\/p>\n

Amid ebbing geopolitical tensions oil and gold dropped in price. And so did Bitcoin, once again manifesting itself as a protective asset.<\/span><\/p>\n

Opinions<\/b><\/h2>\n

Joshua Green, head of trading at Digital Asset Capital Management, voiced an <\/span>opinion<\/span><\/a> that the recent Bitcoin rally was definitely a response to the Iraqi crisis.\u00a0<\/span><\/p>\n

\u201cYou are also seeing oil and gold up strongly,\u201d <\/em><\/strong>he noted<\/em>.<\/em><\/p><\/blockquote>\n

Ran Neu-Ner, the host of CNBC\u2019s Crypto Trader, spoke out in solidarity with Green.<\/span><\/p>\n

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Whereas I would have preferred the BTC price to continue climbing , watching Bitcoin and Gold move down together on Trumps speech cemented the fact that investors are truly moving into Bitcoin as a safe haven from political events. No investor can deny this any longer.<\/p>\n

— Ran Neuner (@cryptomanran) January 8, 2020<\/a><\/p><\/blockquote>\n