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Question #523

How did geopolitical tensions like the U.S. strike on Venezuela influence Bitcoin's behavior?

Category: General
Heightened tension drove demand as investors sought safe haven
Bitcoin crashed due to increased risk from geopolitical events
Investors sold Bitcoin expecting conflicts would stabilize economic outlook
No impact occurred because Bitcoin prices ignore external uncertainties

Why is this the correct answer?

This is correct because when geopolitical tensions rise, investors often look for assets perceived as safe havens. Bitcoin is sometimes called 'digital gold,' and uncertainty can drive demand for it as a store of value. In this case, the U.S. strike heightened instability, leading more traders to buy Bitcoin, which supported its price.

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