- Bitcoin has reached digital gold status.
- Bitcoin tracks safe-haven assets in difficult times.
- Killing of Iranian general seems to have impacted the price of BTC.
Cryptocurrency News Today – It is normal for advocates of the number one digital asset, Bitcoin, to always proclaim different dispositions regarding how the asset will perform in the long-term or short-term. The most common of such claims is that the prospects of Bitcoin’s long-term growth wouldn’t come from its usage as a digital currency. R
ather, advocates of BTC propose that the coin’s growth for the long term will stern from its position as an alternative (in digital format) to safe-haven assets like gold. Hence, the reason why the asset is often called digital gold. In recent years, this narrative was just speculation and didn’t have any real teeth, however, it appears that things have changed now. Bitcoin’s price action has an uncanny correlation to the recent major global events.
Bitcoin Tracks Traditional Safe Haven Assets (Gold) in Tough Times
Recall the recent events unfolding in Iraq when Iran fired several missiles at a U.S military base in the region. The attack was retaliation for the drone strike that killed a top military official from Iran on January 3. The attack by the Trump-led administration caused tensions in the region. The retaliation caused more tension and war seemed inevitable.
Following Iran’s attack, investors grew jittery. Futures for the equities markets plummeted as there were fears of world war III. In correlation with the drop in the equities markets, crude oil, gold, and Bitcoin posted massive rallies exactly the same time, expressing a strange correlation which all but solidifies the argument that BTC is in fact, a safe-haven as described by investors.
Recent Events Have Confirmed BTC’s Position as Digital Gold
The price of Bitcoin appears to have a connection to the events related to Iran long before the recent missile attacks. This is because the coin’s recent massive upward movement began only hours after the Iranian general Qasem Soleimani was killed in the drone strike ordered by Trump. The time between the drone strike and missile attack, the price of Bitcoin closely fluctuated based on how events unfolded.
The price of BTC dived today as things started to deescalate. One crypto and Blockchain analytics group called Messari recently produced a detailed chart showing the timeline of how the events related to the price action of Bitcoin. This elucidated how real BTC’s status as digital gold or alternative to gold is. The past few weeks seem to have made it clear that, for the time being, the number one digital currency by market cap is treated as a digital gold by investors.