The United States drone strike that killed Iranian major general Qassem Soleimani has raised concerns about the global political tension. The economy has reacted vehemently to the incident, with Bitcoin, gold, and oil all growing in value in the aftermath of the strike. Analysts and prominent figures such as Mike Novogratz says the increased instability has lead to an increased value of bitcoin, gold and oil.
The value of Bitcoin, gold, silver and oil is growing exponentially courtesy of the strike by the U.S. on Iranian major general Qassem Soleimani. It has turned into a precarious situation as the political and economic tension continues to soar following the attack. Economically speaking, some see the instability as leaving a significant impact on certain asset classes.
Galaxy Digital CEO Mike Novogratz took to twitter to boasts that his bullish stance on bitcoin and gold has grown amidst all the trouble.
The more I analyze this Iranian situation, the more bullish gold and $btc I become.
— Michael Novogratz (@novogratz) January 5, 2020
Seeing the markets swerve towards risks, by virtue of the political and economic issues, it has reaffirmed the faith of cryptocurrency proponents that bitcoin is a good hedge. It has enticed others too who wish to expand their portfolio and they are finally starting to give it the recognition it deserves.
The rapid rise of Both Tension and Bitcoin
The incident has affected the market tremendously, with assets in abundant, traditionally viewed as hedges, showed an increase in value. The rise in Bitcoin value along with the precious metals is a significant sign that a sizeable number of people are considering the cryptocurrency as a hedge.
Political instability a sign of economic worry
United States President Donald Trump gave orders for the strike on January 3. There was massive outrage from most parts, and Iran responded strongly and audaciously. The most prominent thing that followed was Iran’s pulling out of the nuclear deal.