Svmuu News Bitwise Asset Management pointed out that the recent strength in Bitcoin is not defying the risk-off environment but is directly driven by geopolitical conflicts. Since the escalation of the Middle East situation in late February, BTC has risen by approximately 12%, while the S&P 500 index has fallen by about 1% and gold has dropped by around 10% over the same period, showing a clear divergence in performance.
Bitwise CIO Matt Hougan and Head of Research Ryan Rasmussen stated that Bitcoin is currently embodying two narratives simultaneously: "store of value asset" and "potential international settlement currency." As the financial system becomes "weaponized" and the global payment system fragments, the appeal of non-sovereign, neutral assets continues to rise.
The report suggests that geopolitical fragmentation is driving some countries to explore alternative paths that bypass the traditional financial system, such as attempting to introduce Bitcoin settlement in trade. This trend enhances BTC's potential role in the global monetary system.
Based on these changes, Bitwise notes that Bitcoin's valuation framework is being reshaped. If it captures both store-of-value and transaction settlement demand, its long-term price expectations may be underestimated, and $1 million could shift from a target ceiling to a "baseline level." (The Block)