Bitcoin is moving higher after Iranian missiles attacked US bases in Iraq to revenge the killing of their general Qassem Soleimani. Gold prices also surged while investors seek safe-haven assets preceding the worst. Bitcoin finally is showing that it is a safe haven asset too.
Bitcoin price is actually up by 15% this year becoming the best performing asset of the year so far. Only in the last 12 hours amid the Iranian missile attack to the US bases in Iraq bitcoin price added another 5% gain.
The bitcoin price which is down by nearly 50% compared to the highest price in 2019 surged by $600 in a matter of minutes hitting $8500 to pull back later to the $8300 zone where it is hovering right now at the time of writing.
Bitcoin is following the safe havens gold, silver and the Japanese Yen with the Iranian revenge that is causing concerns for a large conflict that may have an international impact. Gold hit the highest price since March 2013.
Gold broke through $1600 and Bitcoin now trades above $8300 after Iran attacked the US. This confirms that BTC is increasingly seen as a safe haven.
— Marc van der Chijs – new account (@marcvanderchijs) January 8, 2020
The oil price surged by 2.5% after the missile attacks on worries there could be an oil crisis from the Middle East.
U.S. President Donald Trump assured early on Wednesday that the attack did not cause casualties or damage to the US forces.
All is well! Missiles launched from Iran at two military bases located in Iraq. Assessment of casualties & damages taking place now. So far, so good! We have the most powerful and well equipped military anywhere in the world, by far! I will be making a statement tomorrow morning.
— Donald J. Trump (@realDonaldTrump) January 8, 2020
Bitcoin advocates and analysts constantly speculated about if bitcoin would perform like a safe haven asset is in similar situations, a pattern that bitcoin failed to show constantly.
Market Analyst Mati Greenspan said in a note:
“The resemblance between digital gold and the physical stuff is uncanny. They’ve basically been moving in a very similar pattern throughout most of last year.”
While many analysts think that the bitcoin movement was caused by the geopolitical risks for a war between Iran and the US, many remain skeptical about the cause of this surge.
Matthew Graham, CEO, Sino Global Capital. Managing General Partner has posted this question on Twitter :
Do we think bitcoin is moving in reaction to geopolitical risk? Fascinating.
— Matthew Graham (@mg0314a) January 3, 2020
In the meantime, after the killing of the Iranian top general it was widely reported on the media that bitcoin price surged to near $30k on localbitcoins in Iran. However, it revealed later that it was a misunderstanding of the exchange rates in Iran.