After sinking below $7,000 level, Bitcoin rallied more than 5% following the US killing of Iranian general in Baghdad. Many mainstream pundits have linked yesterday’s rally in Bitcoin following Geopolitical tension as a flight to safety along with Gold and US treasuries. While it is tempting to take this observation and assume that Bitcoin will continue to climb as tensions between the two countries continue to heat up, we think it was a mere coincidence that both events happened at the same time. We still need more evidence that people view Bitcoin as a safe haven, it has not existed during a period of global instability as Bitcoin was spawned from the Great Financial Crisis of 2008. If Global instability starts to worsen at the prospect of warfare, Bitcoin could well provide a suitable hedge for millions of people across the world and even without the prospect of warfare, it may provide safety to emerging economies facing hyperinflation with their FIAT currency. But for now, it is still way too premature to equate Bitcoin rise to period of Uncertainty.
Is Bitcoin a Safe-Haven Asset?
January 4, 2020 by Current Wave Count