Bitwise analysts argue that global geopolitical tensions are driving up the price of Bitcoin (BTC), suggesting that the $1 million level may now be a floor rather than a ceiling.
The cryptocurrency market is exhibiting remarkable performance, diverging from traditional assets in the shadow of conflicts in the Middle East. A new report published by asset management company Bitwise reveals that the price of Bitcoin (BTC) has gained 12 percent since the start of tensions with Iran. The simultaneous decline in stock markets and gold demonstrates that the leading cryptocurrency has broken free from its "risky asset" perception and become a safe haven.
Bitwise Investment Manager Matt Hougan and Research Director Ryan Rasmussen describe the chaos as a stepping stone. Analysts state that the fragmentation in the global financial system is increasing demand for neutral currencies not tied to any state. This strengthens the potential for Bitcoin (BTC) to be not only digital gold but also a means of payment in international trade.
Bitcoin Launches a New Era in Global Trade
Experts emphasize that the use of financial infrastructures as weapons is pushing countries to seek alternative systems. The process, particularly the removal of Russia from the SWIFT system, weakened the dominance of the dollar while paving the way for non-systemic tools like Bitcoin (BTC). Iran's experimentation with cryptocurrencies for oil transportation payments is seen as one of the most concrete pieces of evidence that this asset is evolving as a protective shield against geopolitical crises.
Bitwise, considering these developments as a financial option, has updated its expectations for the Bitcoin (BTC) price upwards. The company predicts that if the asset is accepted as both a store of value and a commercial settlement unit, the $1 million level will be a starting point, not an upper limit. With military activity in the Middle East and inflation data from the US, the Bitcoin (BTC) price continues to maintain its strength, retesting the $74,000 level.
