Bitcoin two use cases drive rally amid turmoil
Bitcoin has climbed to nearly $75,000 amid escalating Middle East tensions, defying expectations that it should fall during geopolitical crises.
The rally comes as traditional assets weaken, with bitcoin rising 13% since late February while the S&P 500 and gold declined, highlighting a shift in market behaviour.
“This is not coincidental,”
Said Bitwise CIO Matt Hougan.
Hougan said bitcoin’s strength reflects its dual role as both a store of value and a potential global settlement currency, with geopolitical instability reinforcing demand for both use cases.
He pointed to the erosion of dollar dominance following Russia’s removal from the SWIFT network and the shift toward alternative trade systems, which has increased interest in neutral payment rails like bitcoin.
Hougan added that recent reports of Iran exploring bitcoin for oil transit payments illustrate how countries may consider crypto in real economic activity during conflict, while blockchain transparency still enforces regulatory oversight.
He compared bitcoin to an “out-of-the-money call option,” arguing its value rises as the probability of adoption as a currency increases alongside global financial volatility.
At the time of reporting, Bitcoin price was $74,342.14.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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