20h30 ▪
3
min reading ▪ by
Micaiah A.
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 by 2%, reaching $62,500, while gold climbs to $2,662 per ounce. The volatility of Bitcoin in the face of geopolitical tensions shows that gold remains the favorite refuge for investors.
Israel vs Iran: Bitcoin in turmoil
After a historic September for bitcoin, another episode begins. This concerns the growing tensions between Israel and Iran which have a direct impact on the crypto market. The announcement ofan imminent missile from Iran against Israel caused a BTC price collapsefalling below $62,500.
During this time, gold shines againgaining 1% in value.
This situation reinforces the idea that bitcoin has not yet acquired its status as a safe haven in times of crisis. As Jeroen Blokland points out in his tweet:
« Investors are literally selling Bitcoin to buy gold ».
Investors are choosing caution, preferring a tangible asset like gold in these moments of instability. While the missiles prepare to rain, gold prices rise and BTC finds itself in free fall.
- Bitcoin falls 2% to $62,500;
- Gold rises 1% to $2,662 an ounce;
- The announcement of the Iranian missile against Israel is the trigger.
A crypto market under pressure
In addition to the Israel-Iran conflict, bitcoin and the cryptocurrency market in general are also subject to other pressures. Ethereum (ETH)the second major player in the sector, saw its value fall below $2,600, down 2%. Binance Coin (BNB), meanwhile, plunged towards $550.
This fall of Bitcoin and its crypto companions could only bea short-term retracementas the market has recently racked up gains. However, the current volatility of BTC demonstrates to what extent geopolitical events influence its course.
Other recent conflicts, such as that between Russia and Ukraine, had also triggered significant fluctuations. The idea of “digital gold” seems very far away for 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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Micaiah A.
The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
