The killing of the top Iranian General, Qassim Suleimani, by an US air-strike has begun a series of adverse socioeconomic effects in the world.
While the US Airports are restricting Iranian-American at their airports, Iran has backed out from the international nuclear deal. The threat of an aggressive move by either countries threatens a war on a global scale.
Crypto analyst and CEO of Three Arrows Capital firm tweeted the perspective of the east on the issue. He notes,
Gold mooning on the Asia open from Iran escalation over the weekend
1) Iran pull out of 2015 nuclear deal
2) Iraq parliament calls for immediate evacuation of all foreign troops
3) Trump threatens disproportionate retaliation
4) 3 katyusha rockets fired at US embassy in Baghdad
The move has had a positive effect on Bitcoin [BTC] price as well. Despite being in a downtrend at the beginning of the year, the price now seems to be testing bullish resistances around $7500.
Iraq will expelling US troops. Iran will have more pull in Iraq which is what they always wanted. Saudi isn’t in a position to want a conflict. Mideast less stable. Equals more volatility.
In effect the price of oil/natural gas is escalating as well; it has gained over 5.5% and opened with a bullish ‘gap’ this morning. Novogratz further notes,
The more I analyze this Iranian situation, the more bullish gold and $btc I become.
Zhu is also bullish on other similar investments like Silver as well. The situation is having investors move back to ‘safe haven’ investments. The price of gold surged 4% since the air-strike in a strong uptrend. This morning it breached $1575, gaining over yearly highs in 2019.
The effect of the war is only going to be detrimental to the purchasing power of the citizens. USD dropped about 0.08% with respect to the next stable currency, Japanese Yen.
The current global environment demands hedging one’s capital against the growing risk in the financial markets.
Do you think Bitcoin will continue gaining acceptance as digital gold or is it whale driven price action? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com