Bitcoin Takes a Hit as Tensions with Iran Ease: Experts Urge Investors to Get Educated

The stock market has been on a rollercoaster ride in recent weeks, with the S&P 500 experiencing a 10% correction and then a sharp rebound as tensions with Iran eased. However, the cryptocurrency market has not been as fortunate, with Bitcoin falling from a recent high of $112,000 to $105,094, according to Kraken's price feeds. Experts say that the recent decline in Bitcoin prices is due to a lack of understanding among investors. "It's uneducated panic sellers," said Will Heckman, Chief of Staff at TheStreet Roundtable. "Anyone who truly understands Bitcoin and the decentralized currency should know that when governments are in chaos, when currencies are in chaos, Bitcoin is like a fallback point. So anyone who's panic selling here, they need to get educated." The world has certainly been in chaos lately, with the U.S. bombing Iranian nuclear sites and oil markets bracing for impact. In times of chaos, gold has traditionally been a safe haven asset, and it has seen a modest rally recently. However, Bitcoin has been slipping, which has left many investors wondering why. "Why during war does gold go up, but Bitcoin doesn't?" asked Chris Smith, VP of Strategy at Roundtable. "Does it make any sense at all?" According to Heckman, the answer is no. "Gold's finite, governments don't have control of it, and that's what gives it value in times of chaos," he said. "People need to view Bitcoin the exact same way - and I don't think they do right now. It's moving with the general market, and it should not be." Despite the recent decline in prices, experts believe that Bitcoin is still in a bull market and that there is more upside than downside. "We saw Bitcoin go up to $112K. It's back down to $99K," said Smith. "Do you think that's part of the bull cycle? Or are we slipping into a bear market?" Heckman responded that he doesn't think we're in a bear market and that the bottom is not too far away. "Bitcoin never goes below the previous market's all-time high, which is about $70,000. We're at $99,000. That's only about 30% away," he said. "But I think there's a lot more upside than downside." As for what could send prices plummeting back to that $70,000 level, Heckman said it would likely be some sort of black swan event. "We just went from $110,000 to $99,000 - and a couple missiles later," he said.