- Bitcoin is possibly becoming a safe haven asset.
- The top cryptocurrency is rising in tandem with gold as tensions in the Middle East grow.
- It’s possible that bitcoin may be in the early stages of a parabolic advance.
If you think that the turmoil in Iran and the rest of the Middle East has nothing to do with bitcoin, think again. The king of cryptocurrencies has traded bullishly ever since the conflict between the U.S. and Iran started. bitcoin has pushed higher each time tensions were heightened.
Is it just a coincidence or is bitcoin becoming the safe haven asset crypto enthusiasts hope it would be? My money is on the latter. It’s possible that the smart money are hedging with bitcoin. This could trigger the cryptocurrency’s ascent to new all-time highs.
Bitcoin and Gold Have Been on a Tear Since the Death of the Iranian General
On Jan. 3, President Trump authorized a drone strike to assassinate Iranian high-ranking military official Qassem Soleimani. Since news of the attack broke, bitcoin has been feverishly rising. It’s not the only asset to rise.
Travis Kling, chief investment officer of Ikigai Fund, revealed that bitcoin, gold and oil have risen in tandem since the conflict began.
It’s not surprising to see oil prices skyrocket due to the conflict. A full-scale war between Iran and the U.S. can be ignited at any moment and oil production could be impacted.
What’s interesting is that bitcoin is rising with gold. A case can be made that both are being considered safe haven assets during the wave of uncertainty.
The widely-followed CryptoBirb shares this sentiment. The analyst noted how the number one cryptocurrency advanced from $5,000 to $14,000 when Trump launched the trade war against China. The same thing is happening now that the U.S. is in conflict with Iran. CryptoBirb concluded that the big money investors are hedging with bitcoin through options.
Bitcoin Could Now Be in the Early Stages of a Parabolic Advance
With bitcoin now trading above $8,000, it’s likely that we are in the early stages of a parabolic rally. Analysts think that this is possible but caution that more time is needed to make an accurate call.
Mati Greenspan, founder of Quantum Economics, told CCN,
It is certainly possible but still way too early to tell.
Elliottician Benjamin Blunts believes that bitcoin has likely bottomed out. The trader said,
I think there’s a strong chance the bottom is in. However, I still want to see a daily close above 8600, which is a break of the macro high timeframe downtrend.
When asked if the dominant cryptocurrency has become parabolic, liquidity game theorist Majin replied,
While many traders would be hesitant to say that bitcoin is in the early stages of a parabolic advance, it’s important to note that the top cryptocurrency has only risen in a parabola. Since bitcoin’s inception, all bull markets can be characterized by an exponential increase in the cryptocurrency’s value in relatively short order.
If the analysts are correct, a fresh all-time high may be on the horizon for bitcoin. If that’s the case, then the conflict in the Middle East would certainly be the catalyst.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
This article was edited by Sam Bourgi.