Bitcoin’s Two Use Cases Are Fueling Its Surge During Geopolitical Turmoil

Bitcoin’s latest rally is defying a long-standing market assumption – that the cryptocurrency behaves like a risk asset during geopolitical crises. The world’s largest digital asset climbed to nearly $75,000, its highest level in almost a month, even as tensions in the Middle East escalated. While traditional markets wavered, Bitcoin moved in the opposite direction. According to Matt Hougan, the move is not coincidental. Instead, he argues that Bitcoin is benefiting directly from geopolitical instability, challenging the notion that it should fall during periods of increased uncertainty. Dollar Dominance Cracks Since US and Israeli airstrikes began on February 28, Bitcoin has risen 13%, while traditional assets have moved in the opposite direction, with the S&P 500 declining 1% and gold falling 10%. This divergence has challenged the conventional assumption that BTC behaves purely as