On Friday, the price of cryptocurrencies bounced as much as 5 percent, with Bitcoin reaching as high as $7,300. This wave, which increased the rates of oil and gold, also propelled bitcoin into a positive zone.
Mati Greenspan, the founder of Quantum Economics, stated in his email that the prices of gold moved up because of a US attack on Iraqi soil, against an Iranian military general. Gold is generally observed as a secure asset which is relied upon to retain value in periods of geopolitical or economic uncertainty. Numerous financial specialists guess that bitcoin bears resemblances to gold, as far as its apparent protection from inflation.
Sanctions Build A Desire For Crypto Adoption
Since American President Donald Trump imposed sanctions on Iran, the country’s citizens have exhibited a growing desire for cryptocurrencies. Now, it seems that developing tensions may act as a new catalyst to increase the demand for Bitcoin.
In December 2019, during Malaysia’s KL Summit, Iranian President Hassan Rouhani had emphasized that Muslim nations need to design their own digital currency to protect themselves from the control of the US dollar.
Although some Iranians have adopted Bitcoin, the current market demand can not have a significant impact. It seems big players that have been relaxing in the arena reacted to the news and noticed an opportunity to grasp bitcoin below $ 7000, with a potential catalyst for a strong upswing.
Bitcoin has been a leading asset of the last year, as its value increase by 94% in 2019, all-out triple the return graphed by the Standard and Poor’s 500 Index of enormous U.S. stocks.