Cryptocurrency

Bitcoin hovers near $8,500 as US, Iran conflict intensifies

Bitcoin hovers near $8,500 as US, Iran conflict intensifies

Bitcoin continued to gain on Wednesday, registering its sixth straight daily gain, trading above $8,000 for the first time in two months, as investors believe the rise in the currency was a result to the conflict between the United States and Iran.

The biggest market cap in the cryptocurrency market, the Bitcoin, has made a big jump in prices from $7,000 to $8,500 after Iran attacked US forces stationed at two military bases in Iraq.

As of 09:40 GMT, the Bitcoin rose today to $8,316, registering an increase of more than 5.50 percent according to BitStamp exchange. The highest level was recorded at $8,463, which is the highest record since November 11, 2019.

Meanwhile, the total market value of cryptocurrencies added more than $7 billion to a total of $212 billion, the highest level since the end of November, with Bitcoin continuing to rise along with other major cryptocurrencies.

At the end of last year, the Bitcoin saw shaky movements, as the falling crypto market dragged it to two-week lows to $7,000, but it was able to change these losses to significant gains to see a sudden strong rise to the level of $8000.

The Bitcoin dominance has risen over the past 24 hours, where it climbed to 69.06 percent from 67.72 percent.

Bitcoin is rising at the same time as safe haven commodities, more specifically gold, reinforcing traders' belief that the digital currency is related to haven demand.

However, some analysts argue that the Bitcoin still needs more proof as a hedging asset, and that the recent rise in value is the result of speculators buying Bitcoin in the hope seeing a rebound again.

Regarding other top cryptocurrencies, EOS signaled the largest increase with 2.6 percent surge to $2.90, while Ripple dropped 1.2 percent to $0.2129, according to CoinMarketCap.

While the Bitcoin slumped 5 percent in December, it managed to lock a gain of 94 percent over the course of 2019.

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