Many people have been closely following the US Iran conflict, hoping that it doesn’t turn into an all-out war between the two nations. As Iran started firing rockets towards US military bases, the price of Bitcoin started to edge higher and higher, hinting that people were turning to Bitcoin as a form of safe haven asset. While Bitcoin isn’t a recognized safe haven asset, people still do turn to it in times of economic hardship.
To confirm the findings, eToro has noticed a 46% increase in open Bitcoin positions compared to the past three months. At the same time, the number of open positions in gold increased by 98% compared to the previous three months, confirming the hypothesis.
A Safer Investment Option Than Most
Unlike traditional investment options, Bitcoin appears to be mimicking the style of gold in the sense that it’s not negatively impacted by geopolitical crisis. This in turn makes it an ideal candidate when it comes to hedging financial risk with the ongoing US Iran conflict. As the conflict rages on, Bitcoin has climbed more than 15% and it’s showing no signs of slowing down Whether this is all down to the US Iran conflict or it’s made up of people starting to FOMO is not quite clear, but one thing is for certain and that is that people are buying Bitcoin in large numbers.
Bitcoin Popular in Iran
Since the tensions between Iran and the US reached a fresh all-time high, rumors that Bitcoin was selling for $24,000 in Tehran were rampant. However, when you compare the official rate of Rial with the people’s Rial rate, the price is significantly lower. While there is a premium in Bitcoin in the country, it’s nowhere near as steep.
This finding from eToro could hint that investors are starting to look at Bitcoin like a safe haven asset, but it will be some time before it’s officially recognized as one.