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Bitcoin is gaining altitude again, galvanized by the ceasefire agreement between Iran and Israel. A new all-time high in sight.
In brief
Bitcoin bounces back to $106,000, boosted by the ceasefire between Iran and Israel.
The way is clear. Investors are now waiting for the United States to accumulate bitcoins to load the mule.
Peace…
Bitcoin welcomed the cessation of hostilities. It is returning to contact with $106,000 after a brief foray toward $98,000.
As a reminder, Israel launched a surprise attack on the night of June 13 to eliminate several scientists and generals of the Iranian army. The Islamic Republic responded by raining several hundred ballistic missiles on Tel Aviv, the port of Haifa, settlements, and military bases.
The hostilities culminated with an American strike on the underground uranium enrichment site of Fordo. The nuclear facilities of Natanz and Isfahan were also bombed.
But it seems the belligerents will stop there. That is what Donald Trump’s statements suggest:
“Iran’s response to the destruction of its nuclear facilities has been very weak. […]. I want to thank Iran for warning us, which allowed us to save lives. Maybe now Iran can participate in peace and harmony in the region, and I will enthusiastically encourage Israel to do the same”, wrote the American president on his Truth Social page.
Congratulations whole world, it’s time for peace!
Donald Trump
We will see if this armistice holds. Meanwhile, markets welcome the news and bitcoin flirts once again with its highs.
Why did bitcoin wobble?
The bitcoin retreat is not surprising given that we risked a closure of the Strait of Hormuz (through which 20% of global oil trade transits). The reason is that the resulting monster inflation would force central banks to shut off monetary flow in return.
It should also be noted that bitcoin is a direct competitor to the dollar. Now, the biggest beneficiary of a regime change in Iran would be the greenback. Persia indeed has huge reserves of gas and oil that it refuses to sell in dollars.
That is why the country has been under embargo for decades. Reducing Iranian energy exports is a way for the U.S. to protect the petrodollar system on which its gargantuan deficits (budgetary and trade) depend.
So fear has to be fueled to convince the world that:
The U.S. military can ruin any country;
The United States (the dollar) is the safe haven.
It is for the same reason that the United States overthrew Ukrainian President Viktor Yanukovych in 2014. It was to provoke a war to punish Russia for pushing the BRICS to get rid of the dollar. The same for Iraq, which was invaded for deciding to sell its oil in euros rather than dollars.
Donald Trump pretends to be dragged against his will into these wars, but let us not be naive. Washington’s shows of force have only one objective: to strengthen the empire’s monetary hegemony.
21 million $ per bitcoin by 2046
But then, why do the United States want to accumulate “as many bitcoins as possible” if protecting the dollar is the supreme goal? For the same reason they have the largest gold reserves. It should surprise no one. It is about cannibalizing the competition.
The U.S. strategic turnaround is such that Michael Saylor revised his projections. The Strategy CEO now expects a bitcoin to be worth $21 million by 2046. That is almost twice his forecast from last year.
Saylor called the U.S. political turnaround “extraordinary” at the Bitcoin conference in Prague this weekend. He reminded that Donald Trump said he wanted to make his country the “Bitcoin SuperPower” and that about ten members of his government are openly pro-bitcoin. Including Vice President J.D. Vance, Robert F. Kennedy, and Howard Lutnick.
Combining predictions with statistics, Saylor highlighted the contrast between bitcoin and traditional assets like gold and real estate. The latter pale in comparison to the 56% average annual return of bitcoin over the past five years.
It is only 25% for the “Magnificent 7” (Apple, Alphabet, Tesla, NVIDIA, Meta, Amazon, Microsoft), 13% for the S&P 500, 11% for gold, and 6% for real estate.
Saylor also highlighted the institutional wave. States and companies now own 1.65 million bitcoins. And “this is just the beginning”, he prophesied.
Don’t miss our article on the subject: Bitcoin: “Thousands of businesses” about to cross the Rubicon.
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Bitcoin, geopolitical, economic and energy journalist.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
