Growing geopolitical tensions drive Bitcoin prices higher

Golden Finance News - Based on the current geopolitical situation, the prices of Bitcoin and gold may hit new highs in the coming days.

In order to diversify their investment portfolios, investors have purchased a certain amount of Bitcoin. Image source: Golden Finance

Bitcoin prices have performed well so far this year and are expected to climb further in the coming months due to a variety of factors. At the same time, cryptocurrency rival gold is also expected to perform well.

According to Italian bank Intesa Sanpaolo, the price of gold is expected to rise again from last week's $1,280.13 per ounce due to the current geopolitical tensions, including US air strikes in Syria and Afghanistan and US policy adjustments. Other factors that have led to the tensions include the North Korean nuclear issue, Brexit and the upcoming French election.

Analysts believe that after rising at the beginning of the year, gold prices may fall by the middle of the year and will not rise again until the end of the year. Daniela Corsini, an analyst at the bank, was quoted in mainstream financial publications:

“The market is bound to be nervous about these uncertainties and if U.S. economic data remains strong, then gold will resume its role as a hedge against inflation.” This type of analysis applies not only to gold, but also to the prices of most precious metals.

Ole Hansen, head of commodity strategy at Saxo Bank, was quoted by one source as saying:

"The market is weak in the short term, but supported by political uncertainty. We also see that the yen continues to strengthen. Since November last year, both the yen and gold have risen strongly. In addition, various signs of rising expectations and strengthening of the US dollar are gradually disappearing. US President Trump said that the dollar is too strong, and we also see that the US economy is showing signs of weakness, which has changed the market's bullish view on the dollar."

Bitcoin is known as one of the few assets that is not directly correlated to traditional financial assets. In many cases, the digital currency has performed in the exact opposite of the traditional market. Bitcoin has been considered a safe haven asset, catching the attention of many investors.

Now, more and more investors are buying a certain amount of Bitcoin in order to diversify their investment portfolios.

The increasing use of Bitcoin leads to stronger demand, which in turn pushes up the price of Bitcoin.