Oil traders may be unconvinced from the asset rallying on the back of geopolitical tensions but the opposite is happening for bitcoin as new capital flows in.
Bitcoin Rallies Are Real
Today’s 10% pump of bitcoin from intraday low to a 7 week high of over $8,400 happened as news broke of Iranian retaliation for last week’s US airstrike.
Since the recent US-led military action began in the Middle East late last week, bitcoin has surged 16%. This is no coincidence.
As usual, bitcoin has outperformed its peers by a clear margin as new capital flows into digital asset markets following a prolonged period of consolidation in the low $7k range.
Other safe-haven assets such as gold have experienced similar moves. According to the charts gold has cranked 5% since late last week as they close in on $1,600/oz and hit their highest levels since 2013.
Oil Traders Unconvinced
According to the WSJ, oil traders remain skeptical of geopolitical price rallies. Crude futures surged as much as 5% on Friday after President Trump ordered the strike on…