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On past occasions, BTC had “crashed” due to wars and rumors of wars.
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Various factors combine to keep the price of Bitcoin strong.
The price of bitcoin (BTC) has shown great sensitivity to global political, macroeconomic and war events in recent years. Any situation that may be perceived as chaotic or critical, in general, negatively impacts the price of the digital currency.
This happened, for example, in 2020, when quarantines were declared due to the COVID-19 pandemic. Or, in 2022, when the war between Russia and Ukraine began to take larger dimensions. Or, more recently, in April 2024, due to an escalation of tensions between Israel and Iran.
Now, the Middle East is once again under the global spotlight. Israel, in its fight against Hezbollah, has invaded Lebanese territory.
According to information According to Reuters, the ground operation follows high-intensity airstrikes that devastated the group’s leadership, including the downing of its leader, Hassan Nasrallah, last week.
Despite this situation that is just beginning and that could take on still unsuspected dimensions, bitcoin price shows resistance.
Although it has had some decline, bitcoin remains strong above $60,000as can be seen in the following graph of TradingView:
Bitcoin price since September 1st. Fountain: TradingView.
As CriptoNoticias has reported, there are several factors that drive the price of the digital asset and that, evidently, are prevailing. Among them, the expectation that October and the fourth quarter of 2024 will be a bullish period for bitcoin can be highlighted. This makes many investors want to position themselves in BTC so as not to miss the rise and, due to the simple law of supply and demand, it ends up being bullish for the price.
An example of this is that large corporate and institutional investors, who tend to prefer regulated instruments such as bitcoin ETFs, have been exerting buying pressure.
The following graph, provided by SoSoValueshows that the Bitcoin ETFs have 8 days of positive capital flowswhich impacts the price of the asset:
Money flows to and from bitcoin ETFs in the United States. Fountain: SoSoValue.
Another important factor that is driving bitcoin up is the huge injection of capital that is taking place in the financial markets due to the decreases in interest rates in great economic powers such as USAthe European Union and China.
This “explosive” combination of seasonal issues and favorable macroeconomic events could catapult bitcoin to new heights in the remainder of 2024 and, perhaps, the first months of 2025. If this were to happen, taking into account the environment of global crisis and war conflicts growing, bitcoin would demonstrate its strength as a refuge asset and store of value in chaotic times.
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