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This week, Bitcoin (BTC) has been trading above $80,000 per token, and on Tuesday morning, it hit $81,000. That news will be music to the ears of cryptocurrency investors as it marks the first time that Bitcoin has traded above that level since January.<\/p>\n<\/div>\n
But what exactly is driving Bitcoin\u2019s price to rise above the psychologically important barrier? Here are two of the biggest factors impacting BTC\u2019s rise this week.<\/p>\n
Geopolitical tensions have made many assets highly volatile this year, particularly gold, stocks, and cryptocurrencies. <\/p>\n
The latest geopolitical impact on these assets came from the U.S.-Israeli war with Iran in February, which is currently under a fragile ceasefire.<\/p>\n<\/div>\n
That war has led to Iran declaring the Strait of Hormuz\u2014one of the world\u2019s busiest and most critical supply lanes\u2014closed, which has caused the price of oil to spike.\u00a0<\/p>\n
Over the weekend, President Trump rejected an Iranian peace proposal, which would have seen the strait reopen. But on Monday, Trump announced \u201cProject Freedom<\/a>,\u201d a plan that will see the U.S. military escort oil tankers and other ships through the strait, thereby getting fuel supply chains moving again. <\/p>\n The news sent the price of a barrel of oil down to around $104 as of this writing, from highs of around $127 late last week.<\/p>\n<\/div>\n