Bitcoin Price Growths After Iranian Strike
The latest news coming from Iran has shocked public opinion around the globe. Has the newest turmoil also influenced the cryptocurrency industry?
The whole world is now carefully watching the situation in the Middle East. The Iranian forces respond to the assassination of the general Qassem Soleimani with ballistic missiles strike at American bases in Iraq. The situation is still uncertain, and further conflict may escalate. As usual, in such tense situations around the world, the cryptocurrency industry has also been affected by recent event.
War on the horizon?
Before we move to the actual correlation with Bitcoin, let’s summarize the situation. On January 3, Iranian general Qassem Soleimani was killed in an airstrike conducted by U.S. military forces. Soleimani was the leader of the Islamic Revolutionary Guard Corps – a branch of the Iranian Armed Forces, considered by the U.S. as a terrorist organization. According to U.S. President Donald Trump, the attack was a response to the death of American citizens caused by Soleimani’s actions.
In reaction to the American airstrike, Iranian forces attacked two American bases in Iraq as a part of the announced campaign against the U.S. military. Following the turmoil in Iran, the global market noted some significant reactions. Oil prices soar after the attack on U.S. bases, and people turned to traditionally safe assets like gold and Japanese yen. Interest in Bitcoin has also increased noticeably.
Bitcoin – safe as gold?
The leading cryptocurrency gains about $600, reaching the price of $8,500 in the hours following the missile strike against U.S. forces. As for now, the Bitcoin is oscillating around $8000, which is still the highest value that the cryptocurrency has achieved since November, when China announced a blockchain-friendly policy, causing temporary enthusiasm among investors.
The price growth is likely a reaction to the tense situation in the Middle East. Apparently, people began to see Bitcoin as a stable asset reliable in difficult times – just like they perceive gold. People who are afraid of further complications on the global market caused by crisis situations are likely to secure their funds by means of such assets.
And that’s only a global perspective. If the situation continues to destabilize, the local prices of bitcoins may rise even more. Peer-to-peer trading platforms observed increases in bitcoin prices during various crises. Such a tendency could be observed in Zimbabwe, where bitcoins became a considerable choice for citizens after the ban of foreign currencies. Also, in Hong Kong, during recent protests, people were eager to use cryptocurrencies.
Modern war – modern reactions
There is also one aspect worth noting in the context of recent events. The growing tension between Iran and the U.S showed the shift in the way we receive updates about conflicts between nations. President Donald Trump keeps updating about the situation via his Twitter account. This leads us to an intriguing situation in which a war is likely to be declared through social media.
In the time when the head of one of the strongest military forces in the world is impulsively threatening another country via Twitter, everything is possible. A single tweet from the President of the United States may affect the market in a far more significant state than any intricately planned cryptocurrency announcement. It puts us in a very insecure position when the crypto market situation can easily be turned upside down in minutes.
With such an uncertain future ahead of us, it’s hard to tell how the cryptocurrency industry will respond to the situation in the Middle East. We can only hope that conflict will be resolved without any additional losses.
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