After it became known that the US had killed drone attacks on Iran, Qassam Suleimani, one of the Top generals of the country, increased the Bitcoin price dramatically. Many justify the sudden increase of pressure so that people would use the digital asset in times of increased political uncertainty, as a hedge.
Others argue, however: It is much more likely that this Bitcoin speculating buyers only. Namely, the fact that the developments in the Middle East lead to a lot of people are turning to Bitcoin as a safe store of value.
One thing is for sure: The US drones strikes against Baghdad, the Suleimani were killed, have created a lot of political uncertainty. You have exacerbated the already tense Situation between Iran and the United States.
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Bitcoin and the impending world war
“3. World war,“ and similar terms known since the killing to be trends on Twitter and Google. The Congressman Ayanna Pressley describes the approval of drone strikes by Trump as a “leading us to the brink of war”. They argued that the decision was part of the re-election campaign of the President.
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According to the news, the price of Gold, Oil and Bitcoin has risen suddenly. Bitcoin, for example, increased its total market capitalization within a few hours to about 7.6 billion dollars.
For those of you that Bitcoin is a Safe Haven to keep the Asset, seems to be the reason for the sudden Pump obviously. However, each mind does not believe that the world public Bitcoin purchases because of the risk of considerable political uncertainty, or even a war.
Heightened geopolitical risk has resulted in both gold and Bitcoin moving higher, but for different reasons. #Gold is being bought by investors as a safe haven. #Bitcoin is being bought by speculators betting that investors want to buy it as a safe haven.— Peter Schiff (@Peter Schiff) January 3, 2020
It’s happening. People all over talking about bitcoin as a safe haven. Seems they didn’t learn from the failed China narrative. Zoom in intraday. $BTC moved up 3.30 hours after the Iran news, after first dropping 1.5%. Gold and crude instead pumped right away. pic.twitter.com/IMJwj7OWt6— Alex Krüger (@Krug macro) January 3, 2020
Other reasons that are likely to be in the game
Both Bitcoin Naysayer Peter Schiff, as well as the Economist Alex Krueger believe that the sudden buying pressure is much more likely the result of an expectation: namely, that the people who are afraid of uncertainty, falls suddenly on the market.
Kruger commented on the Timing of the different price pumps and argued that the Bitcoins Pump came hours after the Gold and crude oil. For him, this is a clear evidence for another cause behind today’s buying pressure.
Similar to Twitter users and host of the “Crypto Entrepreneurs”Podcast Charles (@crypto, Charles__) argued. He believes that the today of many widely used Theory is disingenuous, and is used to push the Safe-Haven Argument.
My dad’s entire side of the family lives in Iran. They’re worried about their lives not buying bitcoin. Fuck all of you pushing your bullshit narrative— Charles (@crypto, Charles__) January 3, 2020
In the following Tweet, the Podcaster claims that some of his family members live in Iran and the people there are concerned a lot more your physical well-being as to your financial Situation.