The conflict between the US and Iran is an important example of proving Bitcoin as a safe asset or safe-haven asset in times of global turmoil.
This increasingly tense tension also impacts Bitcoin, which experienced positive prices due to this conflict. According to on-chain analyst Willy Woo, Bitcoin shows its strength as a "wartime safe haven" because it rose more than 20 percent.
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Correspondingly, there are published infographics that illustrate how demand for flagship cryptocurrency surged after Iran-US tensions.
"I think Bitcoin has just gotten the first beta test that succeeded in becoming a safe haven in wartime, this is a test and the evidence is quite large for Bitcoin," Woo said as quoted by Cryptobriefing.com
The surge in interest rates saw Bitcoin rise from a low of $ 6,960 on January 2 to $ 8,440 on January 8.
Then when the US promised to withdraw from the conflict with Iran and renew diplomatic relations between the two countries, investors sold their BTC, resulting in the price of Bitcoin going down.
As of Thursday 9 January 2020 at 12.27 West Indonesia Time, Bitcoin fell by 4.54 percent, down from US $ 8,331 to US $ 7,954.
Other Evidence BTC is Safe during Global Turmoil
This is not the first time that Bitcoin has proven itself to be a value-protected asset during times of geopolitical and financial turmoil.
In 2013 when the financial crisis hit Cyprus, pioneering cryptocurrency entered a bull rally. During that time, Bitcoin successfully rocketed 1,950 percent. The € 10 million international bailout for Cyprus marks the peak of the increase.
A similar phenomenon occurred in the trade war between the US and China which increased in May 2019. When Chinese investors were forced to exit the yuan in anticipation of a possible devaluation, Bitcoin broke above a resistance level of $ 6,500 and jumped by almost $ 14,000.
In conclusion, when the BTC conflict is increasingly in demand, the price rises and is profitable for investors because during the global turmoil money is not a safe choice of value assets because it is more risky.
