Impact of Middle East Tensions on Bitcoin Demand
Recent market analysis indicates a notable decline in Bitcoin (BTC) demand amidst escalating tensions in the Middle East.
Data Analysis
CryptoQuant data reveals a significant drop in Bitcoin's Net Buyer Volume, an indicator of buying and selling dominance, since Iran launched retaliatory ballistic missiles against Israel. According to CryptoQuant analyst JA Maartuun, "Buying pressure has remained low, with a net buyer volume below $100 million, suggesting a lack of strong buying momentum."
Historical Trends
This market movement coincides with historical trends during periods of geopolitical uncertainty, where safe-haven assets like gold typically experience increased demand. However, analysts note that Bitcoin's performance in this situation has not paralleled that of gold.
Gold vs. Bitcoin
Despite its designation as "digital gold," Bitcoin has not mirrored gold's bullish trajectory. Maartuun observes that "Bitcoin has a negative correlation with gold in the current market conditions, despite the decline in U.S. Treasury yields and the expansion of M2 Money Supply."
Please note that this information does not constitute investment advice.