By Nicolas Abington | Crescent City Capital Market Analyst Intern
If you’ve been watching the news this week, you are probably nervously aware of the events that took place between the US and Iran after the assassination of Iranian general Qasem Soleimani. If you would like to read more about US and Iranian tensions, here is a summarized timeline of the recent activity between the two sovereign entities. That being said, this article is about the correlation of events between these tensions and Bitcoin’s price fluctuations.
At the beginning of the tensions on January, 3rd caused major strife throughout the world, with some calling it the catalyst for WWIII. As the news spread about Solemani’s death and US involvement, Bitcoin’s price began to rally. Bitcoin’s price increased from 6865 BTC/USD to 7347 BTC/USD throughout the day. As the situation with Iran started to deteriorate even further throughout the week, Bitcoin’s price continued to rally and hit its peak at 8436 BTC/ USD at the end of January 7th.
As January 8th began, so did the consolidation of Bitcoin’s price. Iran reacted to the tensions by attacking two US bases, there were no casualties, and both sides concluded that these were proportionate reactions to the threats. As the tensions seemingly began to deescalate, Bitcoin’s price began to consolidate to its current 7802 BTC/USD position at the time of writing.
Through the course of this week, Bitcoin seems to be reaffirming itself as being affected by geopolitical factors and acts as a safe haven similar to gold. As the Bitcoin halving comes closer, global economic conditions change, and geopolitics becomes more unstable traders will need to take notice and adjust accordingly.