Gold prices have increased while Bitcoin (BTC) has slipped up greatly, while climbing geopolitical tensions sent shock waves via global markets.
This suggests that investors rush to traditional assets to cover themselves against financial losses, which raises concerns concerning the Bitcoin safe status.
Gold is approaching new heights in the middle of the War Israel-Iran
Cryptographic markets crashed, recording liquidations reaching $ 1 billion after Israel’s last attack on Iran. To date, Bitcoin has exchanged for $ 104,830, down almost 3% in the last 24 hours.
Likewise, the Ethereum price crashed 10% after the attack, exacerbating liquidations.
On the other hand, gold increases. He approaches new peaks while the precious metal tries to recover his refuge position during geopolitical stress.
“The deterioration of the geopolitical situation caused an increase in gold prices,” noted Mary the stock market analyst.
She pointed out that the critical support levels are $ 3,420, $ 3,402 and $ 3,380. A break greater than $ 3,440 potentially opens a movement to the range of $ 3,468 to $ 3,493 during the American session. To date, Gold was negotiated at $ 3,422.
The price of gold could rise upwards because the Israeli-Iranian tension threatens to degenerate. In particular, after the attack on Israel against Iranian nuclear sites and military leaders, Iran warned against a “deadly” response.
To make matters worse, the United States and North Korea seem to take sides. On the one hand, North Korea would have promised military support to Iran. The country slams the actions of Israel, which show the need for a military response.
Brochures, media affiliated with the state of the USSR, have noted that according to the president of North Korea, Kim Jong Un, it is a question of freedom. Kim had previously called Israel cancer and a threat to world peace.
In particular, Iran is a member of the SCO, a mutual defense treaty which includes China and Russia. In this context, Beijing calls Israeli aggression on Iran as violating international law.
On the other hand, the United States seems to join Israel, despite its interest acquired for diplomacy. CNN said Trump said he didn’t want Israel to target Iran when negotiations on a potential nuclear agreement are continuing.
“I want to have an agreement with Iran. We are quite close to an agreement. … As long as I think there is an agreement, I don’t want them to enter because it would explode it. Could help him, but could also explode,” said CNN, citing Trump.
The reports connect the Bret Bare Baier political anchor to the assertion that Trump IS supporting Israel.
This suggests that Trump could announce something different later in the day. Notwithstanding, Iran is committed to retaliation, increasing the red flag of revenge.
The red flag is associated with mourning and martyrdom in Shiite Islam. However, following the 2020 American drone strike which killed General Qasem Soleimani, an eminent Iranian military leader, the red flags were raised as a symbol of revenge. The practice is linked to the calls of the supreme leader to remuneration.
Security shelters revisited as the feeling of risk dominates
The assembly crisis has fueled a striking divergence in the performance of assets. Gold soar while the crypto bleeds. Analysts warn traders to monitor signs of weakening of the bullish momentum. It is especially if the negotiation session of Europe does not maintain the force.
“The geopolitical situation is unstable and the brothers must strictly control the loss of judgment during negotiations independently,” said analyst Mary.
The change of feeling, promoting gold in relation to Bitcoin, aligns with the recent remarks of Marcin Kazmierczak. The co-founder and chief of the Redstone exploitation told Beincrypto that Bitcoin may not be ready to replace gold or obligations like Paradis.
“With correlations ranging from -0.2 to 0.4, Bitcoin shows a variable relationship with actions rather than providing the coherent negative correlation really necessary for effective portfolio protection,” said Kazmierczak in Beincrypto in maintenance.
He said Bitcoin can add diversity to a portfolio, but will not reliably protect against market accidents.
While some crypto supporters have argued that Bitcoin is digital gold, a recent price action suggests that it always behaves like a high -risk asset in acute uncertainty.
While tensions are intensifying and the markets react, the contrast between the ascent of Gold and Bitcoin’s retirement is shaping new stories around security assets.
Investors report a preference for historical security of precious metals on the volatility of digital assets in times of crisis.
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