At the time of writing, it looks like political unrest is the primary instigator of bitcoin’s continued price spikes.
Unrest Causes BTC to Jump Further
This has been something we’ve discussed in previous articles, though more evidence is being offered on account of bitcoin’s sudden jump beyond $8,000 given that the United States has undergone alleged attacks from Iran. The latter country has launched missiles at several military bases belonging to the U.S. in Iraq. Thankfully, no casualties have been reported and the damage appears to be minimal.
President Donald Trump explained in a tweet:
All is well! Assessment of casualties and damages taking place now. So far, so good!
Still, however, the currency is continuing its bullish path and stretched beyond the $8,000 mark during yesterday’s early morning hours. It’s being reported that bitcoin has garnered a 15 percent spike since the globe rang in 2020.
Things took a serious turn for bitcoin starting on January 3 when the United States launched a drone airstrike that killed one of Iran’s leading generals. From there, bitcoin jumped up by $400 in a matter of minutes, surging from the high $6,000 range to about $7,300. It has continued to rise daily since then, garnering anywhere between $100 and a few hundred dollars along the way until it finally reached $8,000 for the first time in about two months.
Bitcoin isn’t alone in its present ascension. Other commodities, such as gold, have hit their highest marks in recent years. The precious metal that everyone values has hit its highest trading point since 2013, while oil – a common resource in the Middle East – is trading for roughly $70 per barrel, a surge of around three percent.
Mati Greenspan – former analyst at e-Toro – commented that bitcoin and gold are more closely correlated than ever before, and that the digital asset has been heavily mirroring the behavior of gold. He states:
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.
Things Calm Down… Eventually
Matthew Graham – chief executive of Sino Global Capital, has also commented that bitcoin is likely performing the way it is thanks to “geopolitical risk.” This is something we have easily seen before. Remember early August of 2019? The digital currency was spiking beyond the $12,000 mark in some regions thanks to unrest from the ongoing tariff war between the U.S. and China. While global stocks were enduring heavy drops, gold and several forms of crypto were coming out on top.
It wasn’t long, however, before the world accepted the tariffs as inevitable and the environment began to calm down. Once this occurred, bitcoin prices experienced slow but steady falls until the currency was trading for well below the $8,000 range by the end of the year.