Bitcoin Price Jumps 8% and Gold Hits a Four-Month High, Is Tension in the Middle East the Driving Force?

    • Middle East tension spurs demand for safe-haven assets
    • Dow Jones hits fresh record high as well

    In less than 24 hours, the Bitcoin price went from $7,170 to $6,853 to $7,341 on Bitstamp. On Bitfinex, the price climbed as high as $7,416.

    Trading volume meanwhile is still low at $378 million though up from less than $200 million earlier this week.

    Altcoins followed the world’s leading cryptocurrency and went green. Monero (XMR) s leading with 9.53% gains followed by Bitcoin Cash (BCH) which is up by 5.39%.

    Source: Coin360

    As for the next move, trader Livercoin said,

    “If the two supports below us hold (7225, 7160), which I expect them to, next target is the resistance above the deep unswept swing highs (7530).”

    Middle East Tension Spurs Demand for Safe-haven Assets

    Just like digital gold, bullion continued its ascent, climbing to four months high. Currently, gold is trading at $1,548 per ounce just inches away from Sept. high of $1,550.

    Gold gained strong traction amid the reviving safe-asset demand as escalating geopolitical tension in the Middle East triggered a wave of global risk-aversion trade. This provided a strong boost to the traditional safe-haven asset class, like gold.

    Tension in the Middle East intensified on reports that US airstrike killed Iranian general Qaseem Soleimani who led the Revolutionary Guards’ Quds force. Iran’s supreme leader then vowed that “severe retaliation” awaits those who killed the commander further heightening tensions.

    The risk-off mood and a sharp fall in the US Treasury bond yields further played a part in the jump in yellow metal’s price.

    In determining the commodity's next directional move, the key focus will be on the latest FOMC monetary policy meeting minutes.

    So, Did Iran played a part in Bitcoins’ Spike too?

    Given that demand for safe-haven assets has risen, it would be assumed that Bitcoin is also influenced by the Middle East’s geopolitical tensions.

    But economist and trader Alex Kruger say this isn’t the case. The move-in Bitcoin, he notes came out four hours after all other assets.

    “Talking heads will soon be discussing how bitcoin is a safe haven and is going up because of Iran. Which is absolute nonsense,” said Kruger.

    “Round numbers are there to get run over, in both directions. I have a small long so I'll be happy if speculators use the narrative to push prices up,” he added.

    Dow Jones Hits Fresh Record High too

    US stock index futures made a new all-time high on Thursday, with the Dow Jones hitting 28,868 on the back of a strong performance in the tech sector.

    However, the optimism entering the market on the new year seems to be fading now as they were sharply lower Friday morning after the US confirmed the airstrike. Dow futures dropped 270 points, futures on the Nasdaq and S&P 500 were also lower. But oil prices rose by about 4%.

    Bitcoin (BTC) Live Price

    1 BTC/USD =$6,801.5995 change ~ -0.91%

    Coin Market Cap

    $124.52 Billion

    24 Hour Volume

    $5.37 Billion

    24 Hour VWAP

    $6.81 K

    24 Hour Change


    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    General Motors (GM) Files Blockchain-Based Map Network Patent for Autonomous Vehicles

    General Motors (GM) plans to build a self-updating navigation system on blockchain to allow use across “specific roads” on autonomous vehicles. In a newly...

    BTC Proposes a Greater Value Than Gold; $670M Transferred For 26 Cents Within Its Network

    Bitcoin’s value proposition in fund transfers is so far one of the most cost-friendly avenues to send money globally. A recent transaction within its...

    COVID-19's Impact On The Economy Claims Another Business as Cambrial Capital to Shut Down

    Cambrial Capital which focuses on a Crypto fund of funds is set to shut down its operations in the near future according to insiders...

    Apple’s New Intelligent Prevention Tracking (ITP) on iOS Threatens Burner Wallets Existence

    Apple’s recent upgrade on the Safari WebKit might soon phase out the convenience of burner wallets within the cryptocurrency space for its users. ...

    Galaxy Digital's Mike Novogratz: This Is The Year For BTC Or I Might ‘Hang Up My Spurs'

    Bitcoin proponent, Mike Novogratz is still “most excited” about the world's leading cryptocurrency but “if it doesn't go all out by the end of...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.