US-Iran clash pushes Bitcoin up to nearly $8,400

Bitcoin (BTC) has seen a major increase over the course of the last five days, but especially yesterday, January 7th, and today, January 8th. Upon entering the new year, the world’s largest cryptocurrency saw a drop on January third, which led it to hit the support at $7,000 and even briefly break it. However, Bitcoin quickly started growing later that same day, and by January 5th, it reached $7.500. During the past 24 hours, however, the coin saw an even larger surge that brought it nearly to $8,400, which seems to be a good start of the year for BTC. However, it should be noted that BTC never reached $8,400, as experts claim that this is a very significant resistance level for the coin. While it is still more than possible that the resistance might reject the price surge, it is just as possible that this level will fall during the next bull run, in which case, BTC’s next goal will be to breach $8,650. Furthermore, Bitcoin also had an increase in dominance, which once again climbed above 69%, meaning that the altcoin market did not follow its lead this time, at least against the USD. However, when it comes to comparing altcoins to BTC, most of them are trading in the red.

What caused the surge?

While many view Bitcoin’s own growths as a positive development, the events that inspired it are nowhere near as optimistic. In fact, it is believed that the latest growth may have been caused by another clash between Iran and the US, where Iran carried out a ballistic missile attack on US airbase located in neighboring Iraq. According to what is known, the move came in response to the attack that killed General Qasem Soleimani, a few days earlier. With tensions high on both sides, many remain quite uncertain regarding what to expect, and whether or not the situation can calm down in the near future. Meanwhile, investors are turning to physical assets, such as oil, gold, as well as digital assets, primarily Bitcoin. The increase in demand and interest is what pushed the coin’s price up, although, as mentioned, altcoins did not react in the same way.