It is impossible for Bitcoin to remain stable in these troubled times. As the Middle East prepares for a possible conflict between Israel and Iran, investors are turning massively to gold. Immediate consequence: BTC falls 2% to $62,500, while gold climbs to $2,662 per ounce. Bitcoin’s volatility in the face of geopolitical tensions shows that gold remains a popular haven for investors.
Israel vs Iran: Bitcoin in chaos
After the historic September for Bitcoin, another episode begins. This relates to the growing tension between Israel and Iran direct impact on the crypto market. Notification ofan imminent missile from Iran against Israel caused a BTC price collapsedrops below $62,500.
During this time gold shines againwith a profit of 1% on the value.
This situation reinforces the idea that bitcoin has yet to regain its safe haven status in times of crisis. As Jeroen Blokland points out in his tweet:
” Investors are literally selling bitcoins to buy gold “.
Investors are choosing to be cautious and prefer a tangible asset like gold during these times of volatility. As rockets prepare for rain, gold prices rise and BTC finds itself in freefall.
- Bitcoin falls 2% to $62,500;
- Gold rises 1% to $2,662 an ounce;
- The trigger is the announcement of Iranian missiles against Israel.
Crypto market under pressure
In addition to the Israel-Iran conflict, Bitcoin and the cryptocurrency market in general are also subject to it other pressures. Ethereum (ETH)the second major player in the sector, saw its value drop below $2,600, down 2%. Meanwhile, Binance Coin (BNB) fell to $550.
This fall of Bitcoin and its crypto companions could only beshort-term retracementas the market has recently racked up gains. However, the current volatility of BTC shows to what extent the influence of geopolitical events its course.
Other recent conflicts, such as between Russia and Ukraine, have also caused significant fluctuations. The idea of ”digital gold” seems very far away at the moment, especially when physical gold is only going up.
And that’s not all. In addition to this crisis in the Middle East, Bitcoin also faces the risks of an AI bubble and an economic recession.
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The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.