US and Iran tensions drive price of Bitcoin higher

The price of Bitcoin could be driven higher by the escalating tensions between the US and Iran, according to the CEO and founder of deVere Group, Nigel Green.

Green, who made the comments after Iran threatened ‘revenge’ against the US over the killing of the Iranian military commander, Qasem Soleimani, noted the price jumped by 5% on Friday, to $7,300, and has increased further to $7,530 over the weekend.

The deVere CEO suggested Bitcoin, which shares gold’s characteristics of being ‘a store of value and scarcity’ and of being perceived as ‘resistant to inflation,’ could potentially dethrone gold in the future as the world becomes increasingly digitalised.

“This latest Bitcoin price increase underscores a mounting consensus that Bitcoin is becoming a flight-to-safety asset,” Green commented.

“With an escalation in geopolitical turbulence, which typically unsettles traditional markets, it can be expected that a growing number of investors will decide to increase their exposure to decentralised, non-sovereign, secure currencies, such as Bitcoin, to help protect them from the turmoil.

“The serious concerns created by geopolitical issues will likely prompt an increasing number of institutional and retail investors to diversify their portfolios and hedge against those risks by investing in crypto assets.

“This will push the price of Bitcoin higher. In turn, due to the market influence of Bitcoin, other major digital currencies will receive a price boost.

“Bitcoin was one of the best-performing assets of 2019 and we can expect to see its investment appeal further strengthen as it becomes known as a safe-haven asset during periods of heightened geopolitical tensions.”

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