Bitcoin’s First Successful Beta Test Of Being A Risk-off And Safe Haven Asset

  • Bitcoin, gold, oil, and Treasuries fell after President Trump assuaged the tension in the Middle East that led stocks to hit records
  • But the last few days saw BTC reacting to the Iran conflict as a risk-off asset and strengthens its case as a digital gold

Bitcoin is currently trading at $7,860 and down by 5.38% in the past 24 hours after yesterday’s high of $8,460.

The break of the $7,800 level was a clean one which was on the back of strong volumes, the top ten exchanges with real volume traded about $1.6 billion.

The level has been “quite significant” in the BTC’s price development ever since it was first crossed in November 2017, explained Mati Greenspan, founder of Quantum Economics in his daily newsletter.

Actually, the sentiments have been higher than it was during Chinese president Xi Jinping’s boom of late October.

But as some commentators have been fearing, Bitcoin price couldn’t sustain the increase in price, an effect which is seen in altcoins as well.

Top cryptocurrencies are all in red by as much as 7.50%. The vast majority of the market is experiencing losses except for a few exceptions like Lisk which is up by 13.62% and REN (5.74%), ZRX (2.51%), TOMO (2.04%), and ETC (0.76%) among others.

Source: Coin360

Bitcoin price made a retracement after breaking above $7,800 after President Donald Trump assuaged the tension in the Middle East. Gold, Oil, and Treasuries also fell while US stocks rose to records as Trump said the US did not have to respond to the Iranian attack on military bases in Iraq overnight. He said no Americans were harmed in those strikes. Sameer Samana, senior global market strategist for Wells Fargo Investment Institute said,

“While geopolitical risks are here to stay, and will cause episodic volatility, we don’t believe the current circumstances warrant a change in the investment outlook.”

Strengthening Bitcoin’s case as a digital gold

Although the price hasn’t been able to break its downtrend, the last few days turn out to be very bullish for the world’s leading cryptocurrency in the grand scheme of things.

It has been the first time that Bitcoin reacted to a macroeconomic and geopolitical event just like other assets. Bitcoin seemingly reacted to the Iran conflict as a risk-off asset just like the yellow metal.

Bitcoin’s response to Iran-US tension, according to the market, strengthens its case as a digital gold.

The first time Bitcoin reacted to the US drone strike that started it all by killing Iranian Major General Qasem Soleimani, unlike other assets, Bitcoin did not respond immediately but after three hours.

But such delayed reaction or a spurious connection, Coin Metrics says could be because of the limitations on the speed of information diffused.

The market, however, is excited about this development as Jeff Dorman, CIO at Arca says,

“BTC reacting to Iran, up & down, is a VERY encouraging sign for BTC. It means every non-crypto investor can now believe with confidence that long-term BTC is uncorrelated but short-term can still act as a VIX/Oil/Gold substitute. Expanded playbook = more overall interest.”

Bitcoin now he says has the same the “world is ending” upside like gold but with added “tech upside.”

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
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she 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

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,467FansLike
2,795FollowersFollow
4,229FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

With A Troubled Past, Are Cryptocurrency Cards Worth the Risk to Push Adoption?

Crypto debit cards were looked at as the next big move for broader crypto adoption and involvement of mainstream players like Visa in the...

Billion Dollar Publicly-traded MicroStrategy Buys 21,454 Bitcoin as a Reserve Asset

MicroStrategy is now taking a deep dive into the world of bitcoin. The $1.2 billion Nasdaq listed software company has officially announced its position in...

How Will Crypto Cope In Regulation-Friendly State Belarus After Lukashenko’s Protested Presidential Win?

Crypto-friendly state Belarus faced a nation-wide internet blackout on Monday after a hotly contested presidential election on Aug. 9. The country has been facing...

Compound Protocol to Roll Out Decentralized Oracles Dubbed ‘Open Price Feed'

Compound, one of the most popular defi protocol, is all set to introduce open price feeds for lending on its platform using a decentralized...

$2 Million Slippage & Surge in Ether Price on Uniswap Helps Net $40k in Profit

A Uniswap user was able to profit $40,000 thanks to $2 million of slippage and the price of Ether surging north of 15%. It all...

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.

Start Using Crypto Today