Bitcoin price has seen a significant uptick just at the start of the new year seeing a rise of almost $1,000 in a matter of a couple of days. BTC started the year at around $7,200 and currently trading at $8,358.  People had high hopes from 2019 as 2018 was one of the longest crypto winters which wiped out more than 80% of the cryptocurrency market. The price of <a href="https://www.cryptoknowmics.com/crypto/a-comprehensive-guide-for-bitcoin-and-blockchain/">BTC</a> did see signs of bullish momentum by the third quarter of 2019 in August, where BTC reached a yearly high of over $13,000.

Many believed the rally was a clear sign of bull run and was being fueled by the trade-war going on between the United States and China. However, in the following months, a series of market corrections brought the price nearly half of its yearly high. While price predictions have never aged well in the decentralized space, market analysts had warned that 2019 would be the year of consolidation and not necessarily a bull run.
<h2>US-Iran Conflict Could Be The Catalyst Before Halving?</h2>
Historically, bitcoin halving has been a highly bullish event where the price of Bitcoin has started to build bullish momentum almost a year before the scheduled event. However, BTC has gradually shed its bubble-like behaviour and high volatility which has made it a lucrative choice of investment for even wall street investors. The next Bitcoin halving is just five months away, and the rising conflict between Iran and the US is being seen as a catalyst for the current bullish momentum building for Bitcoin.

The rising price of Bitcoin amid tensions of war is a glaring sign on how the world is looking towards Bitcoin as a safe haven and store of value in difficult times. The price momentum coincides perfectly with the turn of events in the last couple of days, where the uptick gained momentum right after Iran declared revenge on the United States.

Bitcoin was facing strong resistance at $8,000, $8,200 and $8,400; however, as the news of Iran hitting the US military base in Iraq, this morning helped the king coin in surpassing all these resistance with ease. Technical analysis suggests that a wave of market corrections could bring the prices down to near $7,800 mark. The current price movement of BTC due to Iran and US conflicts should not be seen as a speculative movement since the ongoing conflict is not just fueling BTC price, but also gold, and oil as well. The current conflict could have significant repercussions, mainly in the financial world.
<h2>The Crumbling Monetary System And Rising Demand For "Store Of Value" Assets</h2>
The traditional centralized fiat monetary system is on another brink of another financial debacle which is evident from the fact that governments around the globe have cut <a href="https://www.cryptoknowmics.com/crypto/the-european-central-bank-provides-bitcoin-with-armour-as-it-cuts-interest-rates-to-a-record-low/">interest rates</a> on bonds. In contrast, a few have gone on to put a negative interest rate as well. Major Central banks around the world have been on a gold hoarding spree where they have hoarded the highest quantity of gold in the last two years. These factors prove that people have started to invest in assets which guarantee to protect the value of their investment.

The same pattern was observed during the trade war, where a significant portion of traders from both countries invested their money in gold or Bitcoin. Bitcoin might not have gained much popularity as a form of payment, but has made quite a significant progress as a store of value and safe haven. Many analysts have predicted that the next halving could possibly make Bitcoin scarcer than gold and out of the reach of the general public.

Even if we exclude the current Iran-US factor from the picture, Bitcoin is slated for a bull run pre/post halving. Plan B, who has made the <a href="https://www.cryptoknowmics.com/crypto/plan-b-responds-to-bloomberg-editors-outburst-on-stock-to-flow/">stock-to-flow</a> charts famous, has predicted the BTC price to breach the $100k price point by the end of 2021. The stock-t0-flow chart measures the scarcity of an asset where BTC is currently placed behind gold and is positioned to surpass gold post halving.  While price predictions in crypto space have never faired well, but irrespective of that Bitcoin has increasingly become a choice of a haven.

Iran was looking to regulate cryptocurrencies and mining to find an alternative to the US Dollar in the international trade market after sanctions imposed by them.  Apart from Iran, many other countries have shown interest in Bitcoin and regulating crypto suggesting the declining trust in the fiat system.

Is US-Iran Conflict Behind Bitcoin's Bullish Momentum?

Bitcoin price has seen a significant uptick just at the start of the new year seeing a rise of almost $1,000 in a matter of a couple of days

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Is US-Iran Conflict Behind Bitcoin's Bullish Momentum?

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