Should You Sell Your Bitcoin for Gold Amid Current Global Tensions?

Published by

Vignesh S G

October 3, 2024

Tensions in the Middle East hit a dangerous high on Tuesday night as Iran fired over 200 ballistic missiles at Israel. This has left many worried about the potential for a wider conflict, possibly even World War 3. Investors have reacted quickly, shifting their money from riskier assets to safer ones.

Let’s compare how Bitcoin and Gold have been affected to get a clearer picture.

Gold Prices Rise Amid Conflict

On September 30, gold was priced around $2,634.94. After the missile strikes, the price jumped to $2,663, a 1.1% increase. Currently, gold is trading at $2,651—still higher than its October 1 opening price.

Gold had a bullish trend throughout September. Early in the month, prices fluctuated between $2,523 and $2,492. But after strong buying pressure on September 12, gold hit a high of $2,672 on September 26. Since then, it has been trading between $2,671 and $2,634, reflecting its appeal as a safe investment during uncertain times.

Bitcoin Struggles in the Face of Global Unrest

Bitcoin also saw a bullish trend in September. Starting at $57,379, it dropped to $53,905 on September 6, before reversing direction as new buying pressure pushed the price up. By September 28, Bitcoin reached a monthly high of $65,886.

Just a day before the geopolitical tension in the Middle East exploded abruptly, exposing its ugliest side, the market saw a sharp fall from $63,302 to $60,808. Notably, on the day the gold market recorded a 1.1% upward spike, the Bitcoin market reported a 3.9% downward slump. At present, the price of BTC stands at $61,278. Importantly, the market has not yet recovered from the fall it suffered on the day of the massive attack by Iran on Israel.

The ongoing conflict has clearly prompted investors to shift away from riskier assets like Bitcoin and into safer ones like gold. If the situation in the Middle East worsens, we’re likely to see more impact on the markets, with riskier assets continuing to face downward pressure.

Is the current market volatility a buying opportunity or a warning sign? Share your investment strategies.

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.