Bitcoin drops $4K following Iran’s missile strike on Israel, while gold and crude oil prices surge. Is Bitcoin still a safe-haven asset?
Bitcoin's price plummeted by $4,000 after Iran fired ballistic missiles at Israel, fueling geopolitical tensions. While traditional safe-haven assets like gold and crude oil surged, Bitcoin’s drop reignited debate over its status as a refuge in times of crisis. As Israel vows retaliation, market volatility continues, raising questions about Bitcoin's long-term role as a hedge against uncertainty.
Key Points:
Bitcoin Drops Amid Conflict: Bitcoin fell over 3%, dropping from $64,000 to $60,315 after Iran’s missile attack on Israel, further questioning its position as a safe-haven asset.
Gold and Crude Oil Surge: Gold prices rose 1.4% to $2,665 per ounce, approaching all-time highs, while crude oil prices spiked by 7% to $72 per barrel as investors flocked to safer commodities.
Market Liquidations Hit $521 Million: Over 150,000 traders were liquidated, totaling $521 million as Bitcoin’s volatility took a toll on leveraged positions.
Debate Over Bitcoin’s Role: While some argue Bitcoin is not a true safe-haven asset like gold, others, such as BlackRock’s CEO Larry Fink, maintain that Bitcoin still has potential as an inflation hedge.
As geopolitical tensions rise, Bitcoin’s recent drop fuels the ongoing debate about its status as a safe-haven asset. While gold continues to prove its resilience, Bitcoin’s volatile response to global crises suggests it is still maturing. Until it fully transitions into its potential role as a hedge, Bitcoin will likely remain subject to economic cycles and liquidity influences.
Source: Cointelegraph
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