Bitcoin and oil prices are spiking as demand for safe-haven assets grows due to escalating US-Iran Tensions. The sudden surge came soon after US President Donald ordered an airstrike that killed Iranian General Qassem Suleimani. That greatly increases the tensions between the United States and Iran and raises fears of another war.
03 January, 2020 | AtoZ Markets – Bitcoin prices have jumped nearly 6% in the past couple of hours as news of an American airstrike on Iranian military personnel spreads. Meanwhile, oil prices are also rising. Brent Crude has jumped more than 4% following the strike and is currently trading at $ 68.39 per barrel.
Bitcoin Price Jumps Amid US Iran Tensions
A huge green candle has appeared on the BTC (H4 chart), sending the asset above $ 7,000. Bitcoin slipped to its lowest level in over two weeks at $ 6,850 during the Asian trading session today.
This movement quickly reversed when a few large green candles raised the king of cryptography by $ 400. The move peaked at the weekly resistance level of $ 7,250, rising almost 6% in just a few hours.
The crypto Twittersphere has consequently erupted with speculation about links to news emerging from Iran regarding a U.S.-sanctioned air attack.
An airstrike at Baghdad International Airport in Iraq early Friday killed Iranian Major General Qassem Soleimani, elite Al Quds Force Force chief. He is a part of the Islamic Revolutionary Guard Corps (IRGC). According to Al Jazeera, the commander of the Iraqi militia Abu Mahdi al-Muhandis was also killed in the attack.
The news was announced at a time when the price of bitcoins was rising, and crypto conjecture was starting to accumulate. But not everyone convince.
“Talking heads will soon discuss the fact that bitcoin is a safe haven. And it is increasing because of Iran, which is absurd. The round numbers are there to smash back and forth.”
Oil Price Jumped More Than $ 2 a Barrel
Oil prices jumped more than $ 2 a barrel after the most powerful Iranian general was killed in an airstrike ordered by Donald Trump. It was hinting at an escalation in the Middle East crisis that could disrupt the global economy. Brent crude prices rose over 4% on Friday to more than $ 69 (£ 53) a barrel. Traders reacted to the news in the early hours of the morning.
Russ Mold, Chief investment officer of brokerage firm AJ Bell, said rising crude oil prices reflect concerns about the impact on global supply. He added:
“This will be good news for the markets when the third world war is in trending on Twitter”.
Despite the latest attack, the price of oil remains below a peak of around $ 75 a barrel recorded in April of last year. Several major nations have become less dependent on Middle Eastern oil in recent years, including the United States, which has increased domestic shale production.
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