Summary
- It was reported that the price of Bitcoin dropped below $100,000 at one point due to the U.S. airstrike on Iranian nuclear facilities and escalating tensions in the Middle East.
- Assessments indicated that Bitcoin fails to serve as a safe-haven asset during geopolitical risks such as war.
- It was noted that gold has recently approached its highest international prices again, making its investment appeal stand out.
Crashes Below $100,000 in Just Over a Month
Gold Prices Approach Record High Again
As tensions escalated in the Middle East following a U.S. airstrike on Iran’s nuclear facilities, Bitcoin prices at one point fell below $100,000. Gold, the quintessential safe-haven asset, is once again trending upward.
According to U.S. cryptocurrency exchange Coinbase, Bitcoin dropped below $100,000 at around 11:15 p.m. on the 22nd, then continued to decline, hitting $98,467 at around 5:20 a.m. on the 23rd. Analysts say the drop was fueled by concerns that Iran may retaliate and the United States may launch further attacks following the airstrike. It’s the first time in over a month—since the 8th of last month—that Bitcoin has traded under $100,000.
While Bitcoin rebounded slightly, trading above $100,000 again from around 7 a.m., it has remained weak over the past week. Although there was talk of Bitcoin displaying "safe-haven" qualities as the financial markets surged in April due to U.S. high-tariff policies, this recent decline has revealed that during geopolitical risks like war, its safe-haven status is not valid. As a result, Bitcoin is now perceived as acting like a safe-haven asset only under specific circumstances such as regulatory changes.
On the other hand, gold, the leading safe-haven asset, moved in the opposite direction. The international spot price of gold climbed to $3,388.96 per troy ounce at around 7 a.m. After reaching an all-time high of $3,500.10 immediately after Israel’s airstrike on Iran on the 15th, gold has continued trading steadily above $3,300.
Gold prices plunged into the $3,100 range by mid-last month after a sharp increase in April and a month-long correction but have started rebounding in recent days. Amid the Middle East crisis, coupled with concerns over worsening U.S. government finances and stagflation, both the U.S. dollar and Treasury bonds have weakened, highlighting gold’s relative appeal as an investment.
In response to these developments, funds have again flowed into gold savings accounts (Gold Banking) at domestic banks. On the 20th, the combined Gold Banking balances at Kookmin, Shinhan, and Woori Bank totaled ₩1.09 trillion, up ₩28.6 billion from the end of last month. The Gold Banking balance increased for five consecutive months through April before declining last month.
Mi-Hyun Cho/Jin-Sung Kim jskim1028@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
