Bitcoin price, as well as oil price both, increased as the US kills Iran’s most powerful general in Baghdad airstrike
After falling more than 4% yesterday, the Bitcoin price quickly turned around and increased by more than 6.4%, returning to $ 7,300. There is a somewhat surprising coincidence that world oil prices have also increased by nearly 3% in the middle of an airstrike at Bagdad airport on the orders of US President Donald Trump.
Yesterday everybody freaked out with a small drop. Now price is higher and euphoria starts again.
But, the move of USA in Iraq, that should be more of a concern than a 2-3% move of $BTC.
— Crypto Michaël (@CryptoMichNL) January 3, 2020
Besides, Bitcoin price has reached over 983 million Iranian Rial (about $ 29,500) on the P2P exchange LocalPitcoins. This is nearly 300% higher than the current average price of $ 7,323.
Bitcoin price increased markedly after the US air attack on Iranian generals
Galaxy Digital CEO Mike Novogratz has been unable to contain his delight when witnessing the rising price of Bitcoin in the face of global geopolitical uncertainty. Bitcoin surged more than 5% just hours after the US airstrike killed Iran’s most influential military commander, Qasem Soleimani.
Nice to see$btc react to global uncertainty. #digitalgold
— Michael Novogratz (@novogratz) January 3, 2020
According to the Pentagon’s announcement, President Donald Trump himself ordered the killing of Soleimani when he discovered he landed on Baghdad International Airport at dawn on January 3. The American strike in response to the attack on the US embassy in Bagdad, as well as the shooting of missiles at American diplomats and military personnel, has been going on for weeks.
Quite several Democrats expressed concern about the attack that killed Iranian generals, arguing that this action could cause further instability in the Middle East.
Speaker of the US House of Representatives, Nancy Pelosi, declared:
“The airstrike is in danger of triggering a more dangerous escalation of violence. The United States and the world cannot accept it so that the growth of the tension is beyond the reach of salvation. Trump ordered the strike to be carried out without having the authority to use force against Iran and does not consult with parliament.”
In the face of current US turmoil, Bitcoin prices have responded as we expected. Once the global economy and politics are in a tense state, Bitcoin will be the most safe-haven asset.
Correlation between Bitcoin price and other factors in the traditional market
Moreover, Bitcoin’s bullish momentum underpins the argument that Bitcoin is the modern version of gold. Notably, both gold and Bitcoin rose shortly after news of a sharp increase in oil prices in Iran.
However, some analysts point to the fact that the Iranian cryptocurrency market is too small to trigger such a significant price move. Therefore, the high possibility of Bitcoin price also depends heavily on Mr. Trump’s air command Soleimani.
Notably, in May 2019, LocalBitcoins officially stopped service for Iranian users. The reason may come from US sanctions. This was probably a “ruthless” decision because Iran was once one of the most active markets for P2P transactions. And cryptocurrency is a useful means of overcoming harsh economic sanctions imposed by the United States.
At the moment, LocalBitcoins has reopened its operations to Iran. And it’s no surprise that some people are willing to pay a high price to buy Bitcoin.
The Altcoin trading market also turned green
Elsewhere, Ether (ETH) continues to synchronize with BTC. The leading altcoin has bounced off its daily low of $ 128 before rising to its current trading price around $ 134. Ether only had a modest increase of about 4.6% at press time.
XRP – the third largest currency by market capitalization – also follows today’s uptrend and is currently trading at $ 0.192. XRP has only increased by more than 2% in the last 24 hours.
Most of the top 20 coins in the market turned green, with significant gains of 4% – 14% on the day. In particular, Monero (XMR) leads with a 14% increase in the day. Followed by Bitcoin Cash (BCH) and Bitcoin SV (BSV) with gains of about 12.9% and 11.3%, respectively.
The total market capitalization of the cryptocurrency market is currently at about $ 194 billion. In particular, Bitcoin Dominance accounts for 68.2%.
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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