The new sanctions just imposed by the United Nations (UN) against North Korea could help increase the price of Bitcoin. These sanctions were imposed due to the reclusive regime’s recently conducted nuclear test and are intended to restrict the country’s ability to secure any hard currency. North Korea responded to the sanctions today by launching another ballistic missile over Japan.
The geopolitical tension and its impact on the cryptocurrency market
The current political tension being felt around the world has been continuously escalating due to the provocative actions of North Korea. As a result, the US has pressured the United Nations to expand the criteria of sanctions against the hermit kingdom. Under the UN’s new resolution, North Korea’s imports of refined petroleum products will be reduced to two million barrels per year and a ban of its textile exports will be imposed.
Due to the sanctions and the efforts by North Korean leader Kim Jong-un to continuously advance his government’s nuclear program, the North Korean government has increased its activities to secure more digital currencies including Bitcoin. The aim is to use the cryptocurrencies to bypass many trade restrictions imposed against the country. As part of the move to obtain virtual currencies, North Korea has unleashed its army of hackers to attack its rival, South Korea, which is a popular trading hub for cryptocurrencies.
Meanwhile, the price of Bitcoin is continuously rising and already registered an increase of almost 358% in 2017.
The price of the leading digital currency is also expected to hit the level of $5,500 per token by the end of the year. Due to the current volatility of the virtual currency market, Bitcoin holders can hedge their risk as a strategy against a possible slide in Bitcoin price. Some brokers are already providing options for Bitcoin contracts for difference (CFD) trading and are offering a leverage of 25:1 so far.