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.
You may also like
Intel (INTC.US) Decline Continues: PC Slowdown Is Just the Trigger, Foundry Dilemma Is the Main Issue
Intel (INTC.US) is facing increasing pressure to get its struggling foundry business off the ground.
Palantir (PLTR.US) commercial revenue surpasses government for the first time, annual forecast revised up to $8.53 billion
Palantir’s Q3 revenue increased by 96% year-on-year to $2.31 billion, with its commercial business surpassing government contracts for the first time. CEO Karp stated that demand for sovereign AI remains strong, and the company raised its full-year revenue guidance to $8.53 billion. Despite stock price volatility after hours, both profit indicators exceeded expectations.
US and Iran Show 'Willingness to Negotiate', Causing Global Energy Prices to Plummet
Iran's Supreme Leader has authorized the government to negotiate, while Trump has explicitly stated he "will not" resume military strikes if re-elected. The energy market is under pressure across the board: Brent crude plummeted over 6% in a single day, WTI fell below the $100 mark, and European benchmark natural gas futures at one point plunged nearly 11%. With the US election approaching, Trump faces both electoral challenges and pressure from Israel to initiate conflict. Iran has proposed a "seven-day plan" as its bottom line for reopening the Strait, with substantial underlying disagreements. Coupled with a sharp global inventory reduction of nearly 1 billion barrels, the downside for oil prices may be limited.
Apple (AAPL.US) doesn't burn money. Is the AI sell-off "safe haven" really secure?
Apple, which does not participate in the AI arms race, has become a "safe haven" amid the AI sell-off; however, with its high valuation, Apple also faces a judgment on its growth.
Crypto prices
More
