Odaily Planet Daily reports that Bitwise Asset Management noted that Bitcoin’s recent strength does not contradict a risk-off environment but is directly driven by geopolitical tensions. Since the escalation of tensions in the Middle East at the end of February, BTC has risen approximately 12%, while the S&P 500 has declined about 1% and gold has fallen around 10%, showing clear divergence in performance.
Bitwise CIO Matt Hougan and Research Director Ryan Rasmussen say that Bitcoin is simultaneously embodying the logic of both a "store of value asset" and a "potential international settlement currency." As the financial system becomes "weaponized" and global payment systems fragment, the appeal of non-sovereign, neutral assets continues to rise.
The report suggests that geopolitical fragmentation is prompting some countries to explore alternative pathways outside the traditional financial system, such as attempting to settle trade transactions in Bitcoin. This trend enhances BTC’s potential role in the global monetary system.
Based on the above changes, Bitwise noted that Bitcoin’s valuation framework is being reshaped; if it simultaneously captures demand as a store of value and a settlement layer, its long-term price expectations may be underestimated, with $1 million potentially shifting from a target ceiling to a baseline level. (The Block)