Political tension in the Middle East reached its worst point on Tuesday night when at least 200 ballistic missiles from Iran struck Israel. Most peace-loving minds are disturbed, as they worry about the possibility of this tension escalating into a global war – World War 3. It seems that investors have already recognized the urgent need to reassess their investment strategies. Most of them have relocated their wealth from risky assets to safer ones. Let’s do a comparative analysis between Bitcoin and Gold to understand how serious the issue is!
Gold Rallies Amid Middle East Tension: A Safe Haven in Crisis
On September 30, the price of gold was around $2,634.94. On the day Iran launched the disastrous attack against Israel, the price jumped from $2,634 to $2,663. In other words, the incident pushed the price at least 1.1% higher. Currently, the price stands at 2,651 – still far higher than the opening price on October 1.
In the previous month, gold was mostly bullish. In the initial days of the month, the price hovered between $2,523 and $2492. The situation reversed when strong buying pressure emerged on September 12. The positive momentum pushed the price to a monthly peak of $2,672 on September 26. Since then, the price has been oscillating between $2,671 and $2,634.
Bitcoin Plummets as Political Tension Mounts in the Middle East: Why Investors Are Concerned
The Bitcoin market was mostly bullish like gold in the previous month. At the start of September, the price was around $57,379. Although it sharply plunged to a monthly low of $53,905 on September 6, the entry of fresh buying pressure on September 7 changed the course of the market all of a sudden. The bullish momentum gained on September 7 helped the market to achieve a monthly top of $65,886 on September 28.
Just a day before the geopolitical tension in the Middle East exploded abruptly, exposing its ugliest side, the market saw a sharp fall from $63,302 to $60,808. Notably, on the day the gold market recorded a 1.1% upward spike, the Bitcoin market reported a 3.9% downward slump. At present, the price of BTC stands at $61,278. Importantly, the market has not yet recovered from the fall it suffered on the day of the massive attack by Iran on Israel.
In conclusion, it is clear that the abrupt escalation of political tension in the Middle East has encouraged investors to move away from risky assets to safer ones. There is little doubt that if the tension worsens further, it will create more impact in the market, affecting riskier assets like cryptos.
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Source: https://coinpedia.org/news/investors-are-selling-bitcoin-to-buy-this-asset-amid-middle-east-crisis/