Bitcoin’s Unusual Calm Amid Geopolitical storms
Geopolitical tensions are rising, yet Bitcoin (BTC) remains surprisingly stable. Ray Youssef, CEO of NoOnes, sheds light on this phenomenon. He believes Bitcoin is acting more like a tech stock than a safe haven.
Youssef points out that Bitcoin’s price hasn’t spiked despite recent events.”Crypto markets are usually sensitive to surprises. But lately,they’ve been unfazed,” he notes. A major hack hit Iran’s top crypto exchange, Nobitex.This $100 million breach, possibly by the Israel-linked Predatory Sparrow group, hasn’t shaken the market. Even with growing Middle East tensions and hints of digital warfare, BTC prices are steady around $105,000.Ethereum (ETH) is also calm, trading between $2,120 and $2,330 for seven weeks. “Crypto should react to such shocks. But it’s not,” he says. This includes a meaningful hack and regional unrest.Yet, BTC and ETH prices are unmoved.
Traditionally, assets like Bitcoin should rise during crises. Instead, it’s behaving like a tech stock. The link between BTC and the Nasdaq 100 is strong at 0.68. this suggests BTC’s role as a hedge is fading. It’s now tied to broader market trends.
Why the lack of reaction? Youssef thinks BTC’s hedge status is weakening. It’s now more influenced by macroeconomic factors.”Bitcoin’s correlation with tech stocks is clear,” he explains. This shift shows BTC’s evolving role. It’s less a safe haven and more a tech investment.
Youssef highlights a key trend: investors are moving to safer options. Bitcoin dominance is near 66%. Traders are fleeing riskier altcoins. If tensions rise, this trend may intensify. Capital controls and sanctions could push more funds into BTC. However, it’s not steering its own path.It’s following the tech sector’s lead.
He lists three reasons:
- Markets expect Bitcoin to mirror tech stocks.
- Whales are shifting to BTC, showing a flight to safety.
- Global tensions might boost BTC if infrastructure disruptions occur.
Despite a massive ETH inflow. This shift shows BTC’s evolving role. It’s less a safe haven and more a tech investment.
Youssef highlights a key trend: investors are moving to safer options. Bitcoin dominance is near 66%. Traders are fleeing riskier altcoins.If tensions rise, this trend may intensify. Capital controls and sanctions could push more funds into BTC. Though, it’s not steering its own path. It’s following the tech sector’s lead.
Despite a massive ETH inflows, amounting to 871,000 ETH over one week. It’s now tied to broader market trends.
He lists three reasons:
- Markets expect Bitcoin to mirror tech stocks.
- Whales are shifting to BTC, showing a flight to safety.
- Global tensions might boost BTC if infrastructure disruptions occur.
Youssef notes that geopolitical risk is driving a shift within the broader crypto landscape.Bitcoin dominance is approaching 66%, as traders retreat from riskier altcoins. If global tensions continue to mount, this rotation into BTC could accelerate, especially if capital controls, sanctions, and infrastructure disruptions enter the mix.
