- BTC price is up 2.68% YTD but volume remains low at just above $200 million
- Meanwhile, BitMEX BTC Whale sold $10,000,000 worth of Bitcoin
- Speculators betting that investors will buy BTC as a safe haven has it surging – Peter Schiff
After starting 2020 at $7,150, Bitcoin soon went down to $6,800. But since then Bitcoin has been slowly making its way to $7,600 this weekend. In response to this move, even though remaining bullish, Analyst DonAlt said,
“People are gonna call inverse head and shoulders on this one. That makes me think we go and test the neckline (upper red line). Once there I think we either fake-breakout and dump back down or breakout for real which will lead to a short-squeeze.”
Trader Scott Melker is also seeing “signal of likely continuation up.” However, $7,580 has a “relentless defense” present at this level to which trader Majin says, “Useless. Green dildo is programmed.” WhaleTrades tweeted,
— WhaleTrades 🐳 (@WhaleTrades) January 6, 2020
Meanwhile, Galaxy Digita’s Mike Novogratz is feeling more bullish about the BTC price in relation to the Iran situation. He said,
“Iraq will be expelling US troops. Iran will have more pull in Iraq which is what they always wanted. Saudi isn’t in a position to want conflict. The Middle East less stable. Equals more volatility.”
The more I analyze this Iranian situation, the more bullish gold and $btc I become.
— Michael Novogratz (@novogratz) January 5, 2020
Clem Chambers, CEO of stocks and investment website ADVFN also feels the same way as he wrote on Forbes, “Bitcoin is the best place for flight capital and haven capital,” and the crypto asset will moon if there is a war with Iran.
Bitcoin as a Safe-Haven Asset
It all started on January 3rd when a US drone strike killed Iranian military leader Qasem Soleimani that led to an escalation of tensions in the region. The geopolitical tensions had oil prices surging along with gold, with Bitcoin not far behind.
Nice to see$btc react to global uncertainty. #digitalgold
— Michael Novogratz (@novogratz) January 3, 2020
However, many crypto commentators said the spike in BTC price isn't because of Iran. Alex Kruger tweeted,
Talking heads will soon be discussing how bitcoin is a safe haven and is going up because of Iran. Which is absolute nonsense. 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.
— Alex Krüger (@krugermacro) January 3, 2020
Political instability is often seen by the crypto community as a price driver and Bitcoin as a safe haven like gold in the face of economic instability is a common argument in the industry.
Mati Greenspan, founder of Quantum Economics stated in his daily newsletter that there has been a “clear flight to safety among traditional assets with stocks declining ( across the globe and safe havens like gold,” seeing minor gains.
However, the surge in BTC he said was a total surprise. He also said that until that day Bitcoin has been an uncorrelated asset but given that Iran’s market is small to do it “single-handedly” several players might have been waiting on the sidelines for a good opportunity.
Heightened geopolitical risk has resulted in both gold and Bitcoin moving higher, but for different reasons. #Gold is being bought by investors as a safe haven. #Bitcoin is being bought by speculators betting that investors will buy it as a safe haven.
— Peter Schiff (@PeterSchiff) January 3, 2020
Bitcoin might not be there yet, but its emergence as a safe haven asset will surely increase as the market matures.