Iran-US War: Not Gold, Silver or Dollar: This Asset Is Stealing the Spotlight Amid Global Crisis

Gold has long held the crown as the ultimate safe-haven asset, typically surging during periods of geopolitical turmoil. However, amid the ongoing Iran-US tensions, another asset has stolen the spotlight, not just from gold, but also from silver and the US dollar, following a strong rally since US-Israel airstrikes on Iran began in January. Bitcoin prices have climbed nearly 10% since the onset of the conflict in West Asia.

The cryptocurrency has surged around 10% to above $72,000 since the initial strikes. With this surge, cryptocurrency has outpaced gold, US dollar, and even major broad market indices performance in the duration.

As per Trading Economics data, cryptocurrency Bitcoin has surged nearly 10% since the beginning of the Iran-US war. Bitcoin had also breached the $72,000 mark since the initial trikes on Iran.

(Gold, silver rate data as per Goodreturns.com, Dollar Index, Bitcoin data based on Trading Economics.)

Bitcoin Beats Nasdaq, S&P Other Stock Markets

While Bitcoin has remained as one of the most volatile currencies and assets the cryptocurrency has even outpaced S&P 500, and other major American indexes. The move has come as oil prices jump and stock markets swing sharply, leading some investors to treat the cryptocurrency as a temporary shelter from geopolitical tension.

Why Bitcoin Is Rallying While Gold-Silver Falling Amid Iran-US War?

The cryptocurrency has surged around 10% in March so far. Bitcoin rally is in contrast with its volatile nature. As per experts, the digital asset doesn't stand as an effective portfolio hedge when compared to safe-haven assets like gold.

As per a study published last year, trading volumes in cryptocurrency increases during geopolitical crises. Similar movement was witnessed in Bitcoin during COVID 19 pandemic, the Russia-Ukraine war, and even the Israel-Palestine conflict. However, the digital asset didn't give any significant return in these periods "Bitcoin may not serve as a traditional safe haven in terms of price protection, but may act as a sentiment-driven diversifier," as per the study 'Cryptocurrency dynamics during global crises: Insights from Bitcoin's interplay with traditional markets'

Crude Oil Price Rally

Bitcoin rally also coincided with a stupendous jump in the crude oil prices as Iran-US war impactedd the supply of crude oil via the Strait of Hormuz. Crude oil prices are currently trading well above $95 per barrel mark on Tuesday, March 17. The commodity price has jumped nearly 40% since the beginning of the Iran-US War.

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