Recently, the crypto community has been observing the rapid growth of Bitcoin prices. Besides, gold is also enjoying a price increase. As Galaxy Digital CEO and founder Mike Novogratz believes, this good performance is a result of the U.S.-Iranian conflict. At the very beginning of 2020, the U.S.-Iranian conflict escalated. As a result, fears of a new war raised. The current political uncertainty has led to Bitcoin surging by more than five percent several hours after the U.S. airstrike killed Iran’s military commander Qasem Soleimani.
In his Twitter, Novogratz wrote:
Nice to see$btc react to global uncertainty. #digitalgold
— Michael Novogratz (@novogratz) January 3, 2020
The more I analyze this Iranian situation, the more bullish gold and $btc I become.
— Michael Novogratz (@novogratz) January 5, 2020
At the moment, Bitcoin price makes up $7,585.75, increasing by 1.27% in the last 24 hours. As for gold, its price has grown by 3.34% to $1,575.57 per ounce. According to Novogratz, this growth will continue. And the growing US-Iranian conflict will add to this growth.
As NewsBTC has reported, the BTC price is gaining traction above the $7,400 and $7,500 resistance levels against the U.S. Dollar. And while approaching an $8,000 barrier, there may be a number of hurdles between $7,700 and $8,000. Therefore, Bitcoin bulls should be careful.
Previously, Galaxy Digital CEO stated Bitcoin would reach $20,000 by the end of 2019. As we see, the prediction did not live up. Besides, he said it would certainly not go below $8,500. From what we’ve seen, in October Bitcoin traded below $7,500.
U.S.-Iranian Conflict Is Not the Only Reason for BTC Growth
However, the U.S.-Iranian conflict is not the only factor stimulating the growth of Bitcoin price. As we have recently reported, in May 2020 Bitcoin halving will take place. the event will probably be important not only for Bitcoin but for crypto assets in general. Previously, prices remained firm and rallied before they were halved. After halving, they took off. The same thing is happening currently. The markets continued their path of lateral consolidation, which was also the dominant trend in the last few weeks of 2019.
It is quite difficult to make any long-term predictions regarding market prices. As the political and economic situation is highly volatile, we may only suggest what will happen to prices in the short run.
Even with this instability, Bitcoin remains the number one crypto. However, a high status does not help when it comes to regulation. In Turkey, where people extensively trade Bitcoin and altcoins, the Capital Markets Board regulators have decided to take a deeper look at cryptos’ activity. The authorities are likely to impose strict regulations and take greater control of crypto assets. But whether the use of cryptocurrencies will be legalized is not still clear.
Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.