A good way to measure the longer-term health of the Bitcoin market is to examine where the futures market stands on the matter. The same goes for gold and other “hedge” assets.
Bitcoin is considered, by many investors, as a hedge against virtually every problem the global banking cartel and its friends, the governments of the world, can dream up.
Bitcoin, Gold, and Oil
US President Donald Trump, embroiled in an impeachment process promised to him virtually since he took office, sparked an international conflict last week when he ordered the killing of Iranian general Qasem Soleimani. Iran has responded by bombing several US sites in neighboring Iraq, which led to a multi-dollar spike in crude oil.
It appears America’s lack of an immediate response has led to a short-term decline in the price of oil, but the country’s energy independence initiatives over the past decade have muted the effect on US consumers.
Bitcoin didn’t immediately respond when the conflict first began, with few in the west immediately recognizing the significance of the events. However, once Iran started sending rockets to US military bases, the price of Bitcoin started to move.
As you can see in the chart above, all three assets spiked at roughly the same time.
Bitcoin earned both the highest gains and has managed to sustain those gains. (So far.)
Bitcoin Futures Move to February
The longs on CME Group’s Bitcoin Futures market have largely moved on to February, according to market data. After reaching surpassing $8300, nearly half of the contracts have been settled and moved to February, where the price target is a mere $8315.
Oil and gold futures have also lit up, but nothing has outperformed Bitcoin.
Shorting Bitcoin is a historically bad idea, but many may be surprised at the role socioeconomic factors like war are spurring Bitcoin “adoption.”
Realistically, many of these traders are treating Bitcoin like any other hedge asset – not philosophically – and part of the bull volume has to do with a shared belief that Bitcoin is, in fact, such as an asset.