Does politics affect the Bitcoin exchange rate?
From the very beginning of the popularization of cryptocurrency and Bitcoin in particular, disputes over the physical security of cryptocurrency have not ceased, whether it can be attributed to such assets as government bonds, gold, etc.
Some naturally insist on the uniqueness of this asset, which will allow crypto assets to always stay afloat, while others consider this theory an empty phrase and call Bitcoin a soap bubble, and accordingly, those who think about buying Bitcoin are fools.
In order to slightly understand the situation on the issue of cryptocurrency as an asset, we tried to find out whether the course of the most famous cryptocurrency today depends on the political situation in the world.
American – Iranian tensions.
The New Year greeted us with an aggravation of relations among the American and Iranian leaders, both leaders have a huge impact on international financial markets.
January 3, after the assassination of Iran’s Commander-in-Chief Kassem Suleymani, assets such as gold rose in price. So, the price of bitcoin jumped immediately to 5% ($ 500).
On January 8, Iran fired several missiles across the United States.
However, oil and gold rushed up and the price of Bitcoin was not long in coming, in just a week of tense situation, the price of Bitcoin increased by 20%.
Donald Trump later turned to the Iranian nation with words of reconciliation and amid a weakening conflict, oil, gold and Bitcoin fell in price.
Conclusion
Bitcoin quite often keeps pace with defensive assets and responds to the geopolitical situation.
But of course, it should be said that the price of Bitcoin is not supported by anything, and in this regard, it lacks the main property of a protective asset.
However, it should be noted that in a period of geopolitical uncertainty for many investors, Bitcoin acts as a “trans-shipment point.”
