Larry

Hamster Kombat

2024

Prime

Bitcoin

Update (Oct. 2 at 5:40 am UTC): A previous version of this article suggested Larry Fink’s comments about Bitcoin as an inflation hedge on Fox Business was recent. This has been amended to reflect the correct date. 
Commodities including gold and crude oil rose as the specter of war looms in the Middle East. Still, Bitcoin is moving in the opposite direction, leading to renewed debate over whether it’s a safe-haven asset.&nbsp;
Gold prices gained 1.4% on the day to reach $2,665 per ounce on Oct. 1, just shy of its all-time high, <a data-ct-non-breakable="null" href="https://goldprice.org/gold-price-chart.html" rel="null" target="null" text="null" title="null">according</a> to Goldprice.org. Meanwhile, crude oil prices spiked as much as 7% to reach $72 per barrel.
Bonds and the United States dollar also climbed following a major missile strike by Iran targeting sites across Israel late on Oct. 1. Israel’s air defenses shot down most of the 180 incoming missiles, according to reports.&nbsp;
“The escalating conflict in the Middle East has prompted investors to seek security in gold, bolstering its appeal amidst broader market uncertainty,” said Li Xing, financial markets strategist consultant to Exness.&nbsp;
Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>), often referred to as a safe-haven asset, did the opposite, tanking more than 3% over the past 24 hours.&nbsp;
The asset <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/how-to-sell-bitcoin-5-ways-to-cash-out-your-btc-holdings" rel="null" target="null" text="null" title="null">dropped</a> by almost $4,000, falling from an intraday high of $64,000 on Oct. 1 to bottom out at $60,315 at 20.40 UTC on Oct. 1. It has since recovered marginally to trade at $61,800 at the time of writing.
According to <a data-ct-non-breakable="null" href="https://www.coinglass.com/LiquidationData" rel="null" target="null" text="null" title="null">Coinglass</a>, 154,770 traders were liquidated over the past 24 hours with total liquidations of about $521 million.&nbsp;
Israeli Prime Minister Benjamin Netanyahu has since promised retaliation for the attack.
“Iran made a big mistake tonight — and it will pay for it,” he said in a <a data-ct-non-breakable="null" href="https://www.reuters.com/world/middle-east/israels-netanyahu-says-iran-made-big-mistake-will-pay-2024-10-01/" rel="nofollow noopener" target="_blank" text="null" title="https://www.reuters.com/world/middle-east/israels-netanyahu-says-iran-made-big-mistake-will-pay-2024-10-01/">statement</a>. 
<figure>
 <img alt="Bitcoin tanks, gold rebounds as Israel vows Iran 'will pay' for attack" name="" src="https://s3.cointelegraph.com/uploads/2024-10/01924b2e-6e7f-7b86-88cf-ce37ff238a02">
 <figcaption style="text-align: center;">
 BTC’s response to Iran’s airstrike. Source: TradingView&nbsp;
 </figcaption>
</figure>
It was not the first time this scenario has played out. Bitcoin prices plummeted more than 8% on April 13 after Iran <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-nose-dive-as-political-tensions-escalate-israel-iran-middle-east" rel="null" target="null" text="null" title="null">launched</a> a drone attack on Israel.&nbsp;
<h2 id="bitcoin-questioned-as-a-safe-haven-asset">Bitcoin questioned as a safe haven asset</h2>
Jeroen Blokland, founder of the Blokland Smart Multi-Asset Fund, was among those who said investors are selling BTC to buy gold, while Adam Cochran <a data-ct-non-breakable="null" href="https://x.com/adamscochran/status/1841165482961092616" rel="null" target="null" text="null" title="null">quipped</a> about it being a “safe haven.”&nbsp;
Meanwhile, precious metals analyst Jesse Colombo <a data-ct-non-breakable="null" href="https://x.com/TheBubbleBubble/status/1841123937125576757" rel="null" target="null" text="null" title="null">told</a> his 169,000 X followers that Bitcoin and crypto always tank when there are geopolitical fears, unlike precious metals, before adding:&nbsp;
<blockquote>
 “That confirms my long-held belief that crypto is not a safe haven. It's yet another risk asset just like high-flying tech stocks.”&nbsp;
</blockquote>
US <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/magnificent-seven-stocks-shed-2-6-trillion-busy-earnings-week" rel="null" target="null" text="null" title="null">tech stocks</a> also tanked on Tuesday, with Apple and Nvidia sinking about 3% and the Nasdaq 100 losing more than 2%.
However, BlackRock CEO Larry Fink once said that BTC could still be an alternative inflation <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/bitcoin-and-inflation-everything-you-need-to-know" rel="null" target="null" text="null" title="null">hedge</a> asset, while speaking to Fox Business in July 2023: 
<blockquote class="twitter-tweet">
 🔥LARRY FINK:&nbsp;"Instead of investing in gold as a hedge against inflation ... [<a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a>] can represent an asset that people play as an alternative." <a href="https://t.co/6ksXWwoFof">pic.twitter.com/6ksXWwoFof</a>— Cointelegraph (@Cointelegraph) <a href="https://twitter.com/Cointelegraph/status/1841283230953329088?ref_src=twsrc%5Etfw">October 2, 2024</a>
</blockquote>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-3-months-copy-gold-bull-run-analyst" rel="null" target="null" text="null" title="null">Bitcoin price may need 3 months to copy gold bull run — Analyst</a>&nbsp;
Head of research at 10x, Markus Thielen, told Cointelegraph that Bitcoin was initially designed as a peer-to-peer electronic cash system, not a safe-haven asset, before adding:&nbsp;
<blockquote>
 “Bitcoin is still maturing and has yet to fully transition into its potential role as a gold substitute, which some believe will occur if governments outlaw individual gold ownership.”
</blockquote>
He said that until then, “Bitcoin’s price will continue to be influenced by economic and liquidity cycles,” and the current economic outlook remains weak.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/hamster-kombat-tap-to-earn-games-axie-pals-web3-gamer/" rel="null" target="null" text="null" title="null">Hamster Kombat tappers evolve with Swipe-to-Earn + Axie Pals Tamagotchis: Web3 Gamer</a>

Bitcoin tanks, gold rebounds as Israel vows Iran 'will pay' for attack

Table of Contents

Cointelegraph

Other articles published on Oct 2, 2024

Nibiru Foundation Launches Venture Arm to Support Web3 Innovation

Bitcoin’s Price Drops Below $62,000

Coinbase Announces Platform Downtime for Upgrade on October 26, 2024

21.co Integrates Chainlink Proof of Reserve for Enhanced Transparency in Wrapped Bitcoin

World Liberty Financial whitelist

Bloomberg Analyst Reveals Groundbreaking Development for Two Altcoins

Join our free newsletter for daily crypto updates!