Coin Metrics, a cryptographic market analysis company, examined three important events related to the military tension between the United States and Iran, publishing the results in its latest report:
At this point, oil and gold have already reacted positively, while BTC has been delayed for about three hours. Hence, the answer cannot be used as proof of its safe haven properties, because other explanations are possible:
An examination of the Iranian response illustrates how quickly market efficiency can improve, says Coin Metrics. The explanations for BTC's response are at present less numerous, with the evidence suggesting a connection between BTC and the escalation of military tensions and which serve as validation of the safe haven theory:
This provides "perhaps the strongest evidence in bitcoin history" of a direct connection between bitcoin and geopolitical events. "While the previous two events in our study measured bitcoin's response in the order of hours, its response to this event can be measured in the order of minutes," concludes the report.
As Coin Metrics argues, "we have witnessed perhaps the strongest validation of the bitcoin safe haven theory in its 11-year history, and this watershed moment marks an important milestone in maturing bitcoins as a legitimate asset class."
Cryptocurrencies have revolutionized the world of economics and investment, offering a decentralized alternative to traditional…
Milkomedia-C1 announced the integration of the DJed stablecoin network on its platform. Milkomeda C1, a…
Cryptocurrencies have gained immense popularity over the last decade, attracting investors from all over the world. However,…
The former cryptocurrency exchange FTX was based in the Bahamas. The island nation has not been…
As Shiba Inu adoption skyrockets, the memecoin and the entire Shiba ecosystem…
The adoption of digital currencies such as Bitcoin has continued to grow unabated. Many…