Bitcoin’s performance remains under scrutiny as global geopolitical tensions rise. Over the past decade, increasing regional conflicts have impacted financial markets, but Bitcoin is emerging as a potential hedge against uncertainty.
The Israel-Gaza war continues, with Israeli Prime Minister Benjamin Netanyahu removing Defense Minister Yoav Gallant. Meanwhile, North Korean troops bolster Russia in Ukraine, and the recent election of U.S. President-elect Donald Trump may shift military aid, pressuring European allies to take a larger role. These developments escalate regional and global risks.
Historically, Bitcoin reacts negatively to such tensions. For example, in April 2024, Iran’s missile strike on Israel following bombings in Damascus led to an 8.4% BTC price drop. However, research from Andre Dragosch, head of research at Bitwise’s ETC Group, shows Bitcoin often rebounds within 50 days, surpassing pre-event levels.
Dragosch notes that despite its decreasing volatility over time, Bitcoin remains riskier than traditional assets. In periods of uncertainty, investors tend to pivot to safer options like gold or U.S. Treasurys. Still, Bitcoin’s ability to recover highlights its resilience and potential role in conflict-driven markets.
Source: Cointelegraph
