Friday, February 3, 2023

The Bitcoin Price Acutely Spiked After News of Trump’s Syria Strikes

The Bitcoin Price Acutely Spiked After News of Trump’s Syria Strikes

Correlation isn’t causation, of course, but in the very least it’s interesting that bitcoin went on an acute price run precisely as news reports broke on April 13th that President Donald Trump had launched airstrikes against Syrian military positions. Even if unrelated, the episode seems to provide another reminder that bitcoin is the best hedge yet against the economic and political status quo.

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‘Mission Accomplished’

Just a few hours before midnight on April 13th, breaking reports indicated President Trump had ordered the launching of more than 100 tomahawk missiles against positions in Syria, the international stage’s current hotbed flashpoint.

Unsurprisingly, punditry exploded all across the world’s various social media platforms. Somewhat more surprisingly, though, is that the bitcoin price acutely spiked too.

In the graph above presented by Business Insider crypto correspondent Frank Chaparro, note how the price begins shooting up at 8:45 PM, which is right when reports of the airstrikes started to break.


If nothing else, a curious coincidence.

Though it is reminiscent of all the talk during the 2017 cryptoeconomy bull run that South Korean investors would acutely drive crypto prices up with buy pressure every time President Trump and North Korean Supreme Leader Kim Jong-un exchanged bellicose rhetoric. The idea being, of course, that investors were fleeing toward crypto to be protected from traditional economic devastation in a potential nuclear conflict.

Rumor or not, the dynamic is a reminder that many crypto investors — not least among them bitcoin investors — see cryptocurrencies as a hedge against uncertainty in the world, both in a post-2008 economic sense and in a political sense.

Brian Kelly Is Calling the Bottom

Maybe we’re in store for a few more bullish price spikes in the coming weeks. Wall Street-turned-Crypto Street investor Brian Kelly seems to think so, arguing on CNBC that the recent cryptoeconomy downturn is coming to a close:

“We’ll know, I mean, presumably after April 17th if we can hold these gains, we’ll know how much this tax selling impacted. If you use Tom Lee’s work, we probably had about 500 to 600 billion dollars come off the market for tax purposes, and we’ve had that since December. So we should be there, looks like we’ve bottomed here. There definitely seems to be a change in the sentiment around it. I think this is the real thing.”

We’ll see what happens.

What’s your take? Do you think the Syrian strikes and the bitcoin price spike are unrelated? Is the bear market over? Sound off in the comments below.

Images via RedState, The Daily Wire

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