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Cryptocurrency News Articles
Bitcoin (BTC) Retreats Below $60,000 as Crude Oil Prices Jump Amid Rising Middle East Crisis Odds
Oct 03, 2024 at 11:32 pm
Bitcoin (BTC) retreated below $60,000 for the first time since Sep. 16 after Joe Biden hinted that he would support Israel hitting Iranian oil facilities
Bitcoin price dropped below $60,000 for the first time since mid-September as crude oil prices continued to rise amid heightened geopolitical concerns in the Middle East.
Bitcoin (CRYPTO: BTC) fell below $60,000 for the first time since Sep. 16 on Monday evening as President Joe Biden hinted he would support Israel hitting Iranian oil facilities, according to Barrons.
Other altcoins, such as Ethena (CRYPTO: ENA), Conflux (CRYPTO: CFX) and Beam (CRYPTO: BEAM), dropped more than 15% to become the worst performers within the top 100.
Meanwhile, crude oil prices bounced back, with Brent and West Texas Intermediate surging over 4% to reach $76.5 and $73, respectively.
American indices, such as the Dow Jones andナスダック 100, reversed earlier gains and dropped more than 50 basis points.
Biden's statement comes amid rising possibilities of a wider conflict in the Middle East. A report by the New York Times, citing senior Israeli officials, said the country was prepared to go to war with Iran.
Polymarket traders are giving a 63% chance of Israel attacking Iranian oil this month.
A Prolonged Middle East War Would Impact All Asset Classes, Including Crypto
Any prolonged war in the Middle East would have a major impact across all asset classes, including cryptocurrencies.
It would drive up oil and gas prices, as Iran is a major exporter of more than 1.3 million barrels a day. It would also lead to supply chain disruptions because of the importance of the Red Sea in the shipping industry.
Higher inflation would then impact the ongoing interest rate cycle by the Federal Reserve and other central banks.
The geopolitically-driven move up in oil prices continues today (Bloomberg chart below). Interestingly, the behavior of some other market prices signals somewhat greater concerns about possible price spillover effects/passthroughs. #economy #markets #oil #econtwitter pic.twitter.com/7pDTdJ0xnl
Interestingly, three Blackrock analysts said in a recent note that Bitcoin tends to hold up better than other assets during periods of geopolitical concerns.
They cited six major events, including the US and Iran escalation, the COVID outbreak, 2020 US election challenge, Russia’s invasion of Ukraine, US banking crisis and the yen carry trade unwinding. In all these events, Bitcoin performed better than the S&P 500 index and gold in a 60-day period.
Blackrock also noted that Bitcoin had more potential catalysts that could push it higher in the long term. The most notable were the US debt dynamics, its long track record of outperformance, its uncorrelated asset status and its 21 million supply cap.
Other analysts, such as Michael Saylor, have noted that Bitcoin will ultimately become a hedge against inflation.
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- ETFSwap (ETFS): A Revolutionary Decentralized Platform Empowering Direct ETF Purchases
- Oct 04, 2024 at 03:25 am
- The world of cryptocurrency and traditional investments has long been dominated by brokers and middlemen, often creating frustrating barriers for investors. But what if you could buy Spot Bitcoin ETFs and Ethereum ETFs directly, without the need for brokers and third-party agents? Enter ETFSwap (ETFS), the revolutionary decentralized platform that allows investors to bypass brokers and third parties, reducing costs and offering a breezy experience.
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- Sophon Announces Undisclosed Token Round Backed by Binance Ahead of Layer-2 Blockchain Network Mainnet Launch
- Oct 04, 2024 at 02:35 am
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- Analysts Suggest Rising Geopolitical Tensions and November's Presidential Election Are Driving Investors Towards Gold and Bitcoin as Safe-Haven Assets
- Oct 04, 2024 at 02:30 am
- Analysts at J.P. Morgan suggest that increasing geopolitical tensions and November's presidential election are driving investors towards gold and bitcoin