Iran attack sends Bitcoin to lowest level in six week, May result in doubt

Geopolitical risks caused the price of Bitcoin to fall. At one point on Thursday, the largest digital currency stood at $72,300. At the time of writing, Bitcoin is trading for$72,300. The month of May threatens to end on a negative note, putting us at risk of a new downtrend.

May

The price of Bitcoin reacted in the same way as other high-risk investments, with a sharp decline following reports that the US military attacked Iranian drones and a launch base in a defensive strategic move to protect ships in the Strait of Hormuz. Investors are withdrawing in increasing numbers from riskier investments such as cryptocurrencies, as the US and Iran cannot seem to agree on a proposal that would actually open the strait.

Adding to this is the fact that the Federal Reserve is considering raising interest rates for the first time in years again.

The month of May suddenly looks a lot more negative for Bitcoin. That would be the first time since March that we close in the red. Fortunately, we still have two trading days to turn the tide or close unchanged.

Other so-called ‘safe havens’ are also at a loss for the moment. Even the price of gold, normally seen as the ultimate place to park your money in times of geopolitical tension, has been performing very poorly in recent weeks.