News about an operation of the U.S. forces at the Baghdad airport which resulted in killing one of the key people of the Iranian regime, the head of the elite Quds Force the General Qasem Soleimani. Immediately after the news bitcoin spiked by 5%.
Fears that an already tense relationship between the two countries would escalate into a war caused the increase of gold prices by 1.5% and bitcoin prices by 5% which suggests that investors are preparing for the worst that may happen.
All the world is talking about President Trump decided to take out the Iranian general Qassim Suleimani and that the move may cause the start of a war in the region.
General Qassim Suleimani was the head of the Islamic Revolutionary Guards and one of the most important military officials in the country. It is expected that Ayatollah Ali Khamenei will want to revenge his death.
General Qassem Soleimani has killed or badly wounded thousands of Americans over an extended period of time, and was plotting to kill many more…but got caught! He was directly and indirectly responsible for the death of millions of people, including the recent large number….
— Donald J. Trump (@realDonaldTrump) January 3, 2020
Fears that the situation will escalate to a war caused U.S citizens to leave Iraq. Also, Oil prices surged by 3% because of fears that the war is near the corner.
Bitcoin is being sold at premium rates against the Iranian dinar at Localbitcoins according to some reports that circulate on Twitter. Prices are reported to reach even the equivalent of $30k which is many times higher than the actual price of $7.260 in most crypto exchanges.
Iranians buying bitcoin at above market rates? Have not had the chance to confirm but this is circulating in China crypto insider circles. pic.twitter.com/fjuk6xbn76
— Matthew Graham (@mg0314a) January 3, 2020
The country’s economy has been in a death spiral over the last 40 years with high inflation rates. Additionally to the U.S. sanctions in the last year Iran was also removed from the SWIFT banking system making impossible for the Central Bank of Iran to work with financial institutions around the world.
It seems that Iranians see in Bitcoin an option to escape their failing currency.