According to market analysts, escalating tensions between the US and Iran have prompted an increase in Bitcoin price.
General Qasem Soleimani, head of the elite Quds Force of the Iranian Revolutionary Guards, was murdered by U.s. Troops in Iraq. This pushed Bitcoin price higher than $7,500, and a broke a steady decline on the price that started before Christmas.
The cryptocurrency is pretty volatile, making it hard to connect one factor to significant market fluctuations, but international instability is often cited as a factor contributing to rising Bitcoin price.
Similar situations on the past for Bitcoin price increase:
A similar pattern occurred in August, once global stocks were rocked, and China’s yuan was depreciated as a result of the internal US-China trade war.
The recent increase in prices shows no signs of slowing down, with close-hour-on-hour increases for bitcoin over the last few days. Conflicts between the US and Iran have also steadily increased since the targeted assassination of Soleimani, including Donald Trump, promising to carry out attacks on historical sites if Iran fights back.
Approximately 20 billion USD had entered the crypto market since then.
Even so, the bulls are cautioned against being too ambitious, as prominent analysts like @BitBitCrypto and Peter Schiff think the cryptocurrency has rallied since Friday due to speculators buying on the hope that bitcoin will attract haven demand from traditional investors.
So, an inverse head-and-shoulders breakout could end up trapping bulls on the wrong side of the market or may remain elusive if that flow dries up.
A failure to hold above today’s low of $7,342 would validate the bearish view put forward by the descending 10-week moving average and likely yield a re-test of $6,850.
Bitcoin price is connected to everything.
Something is bright for all of us. If groundbreaking international news appears like significant scale conflicts or trade wars, people tend to look for an alternative to safeguard their savings. Some of them do it buying gold – increasing the asset value (reflected in a price increase in PAX Gold stablecoin). Many others see bitcoin as the escape from international conflicts, definitely more similar to gold than fiat. Of course, Bitcoin’s price increases after this demand to stay safe appears.