Bitcoin's Price Goes Up By 8%. Reaction To the Attack?

2 min reading

Bitcoin (BTC) continues to grow for the fifth day in a row. Since yesterday the BTC exchange rate increased by nearly 8%. At the peak moment the value of it reached almost USD 8400, which is the highest level since November. As economists claim, an increase like that is a reaction to the Iran bomb attack on US military bases in Iraq.

Bitcoin's rate goes up

Currently, the price of Bitcoin (BTC) is 8336 USD (according to CoinMarketCap). At the peak moment, however, the exchange rate was close to 8400 USD (8394 USD to be precise), testing the highest levels it has reached for almost two months. Since yesterday the value of the token increased by 7.5%, and as much as 21.4% since Friday.

By continuing the upward trend, which has been going on since then, the BTC rate crossed the psychological limit of USD 8000 yesterday. It also, for the first time since November, reached the 200-day rolling average. Today, the "benchmark" cryptocurrency is continuing its appreciation towards USD 8,500, as it reached the highest price since November 19, 2019.

BTC price's increase as a result of Iran's attack on the US?

A great number of economists think that a strong increase of Bitcoin's value from just above USD 6,900 to nearly USD 8,400 was strongly influenced by a rising tension between Iran and the United States. The situation seems like a confirmation to the fact that the last push towards USD 8,500 came shortly after mainstream media informed about the Iran's attack on the US troops stationed in Iraq.

According to media reports, on the Tuesday night Iran launched at least a dozen ballistic missiles that fell on Al Asad and the military airport in Irbil, two US military bases in Iraq. According to the reports of the Iranian state media, at least 80 people were killed in the attacks. The mainstream media do not confirm these reports, though,  the Pentagon reports only that "loss estimation is underway."

As a consequence of the attack, gold, silver and oil prices increased as well. Bitcoin's rally next to the assets like oil, gold and silver is not a surprise to the majority of traders as many believe that digital assets are correlated with what happens to the price of particular goods.

Altcoins stand still

In the past, strong upward moves on the Bitcoin market have often had a positive effect on the quotations of leading altcoins. Not this time. Only Chainlink (LINK), Tezos (XTZ) and Litecoin (LTC) followed in the footsteps of BTC, by increasing respectively by: 17%, 6% and 4% in the last 24 hours.

The rest of altcoins recorded either small movements, both up and down. The situation is similar in the case of hard forks of the oldest cryptocurrency that actually stand still and that is Bitcoin Cash (BCH) (which increased by 0.7%) and Bitcoin SV (BSV) (which decreased by 0.1%).

The market capitalization of all cryptocurrencies has exceeded the level of USD 200 billion and currently amounts to over  the highest since November last year.