After months of falling into an abyss that could have spelled its doom, Bitcoin’s price is finally up a notch. Sadly, it might have been inspired by bad news. As tensions arise in the Middle East, Bitcoin’s price has soared high along with gold and oil prices. Prices fuelled by war are never good news from a moral perspective, but when it comes to the leading cryptocurrency in the world, it spells the first positive news after months of depressing price declines.
The soar didn’t surprise experts who believe that Bitcoin is correlated to the price action of commodities such as gold and oil. It remains to be seen if bulls can keep the rally up or the price goes down in another negative whirlwind.
The Price Went Up Immediately After Iran Attacked US Bases in Iraq
Last night, Iran attacked two American military bases in Iraq as retaliation for the US drone attack that killed Maj. Gen. Qassem Soleimani. There are no casualties reported so far with the Pentagon still assessing the damage done. The two targets were Al-Asad and Erbil bases in Iraq. Over 5,000 US troops are currently located in Iraq as part of the 2003 invasion to overthrow Saddam Hussein. That book is closed, but last week’s Soleimani killing has truly stirred up the already strained relationship between the USA and Iran.
President Trump took to Twitter to address the attack and will make a statement soon. The tension rising in the Middle East has been making waves in the world for days now, with many believing it to be the start of World War III. Experts are adamant that it won’t come to that, but attacks similar to the one in Iraq last night are to be expected.
As mentioned, the attacks immediately raised the price of gold and oil as also sent Bitcoin sky-high. The cryptocurrency’s price was locked in a downward trend for months now, but in less than 24 hours, it shot up to $8,500 which is a 15% jump. Traders are intrigued by the latest developments and will watch the market closely to see if it stays above the 200-DMA.
Currently sitting at $8,300, it will be interesting to see if bulls can keep the market afloat and the rally up. Bitcoin’s dominance in the crypto market has risen to 69.1% with the cap standing at $217.7 billion.
Altcoins on the Rise Too
It’s not surprising to predict that altcoins are currently on the rise too. Bitcoin’s price directly influences them as well, and the latest increase has led to notable gains for Litecoin and LINK. With significant gains of 4.73% and 10% respectively, it’s clear that altcoins will benefit from Bitcoin’s booming price.
Experts would like to see the current price flip from resistance to support – that will prove that the sky-high jump was not a one-time thing. If the price declines further, the next support will probably be around $8,150. It remains to be seen if other geopolitical events further boost Bitcoin’s price to the delight of traders.