Why Did The Bitcoin Price Rally Past $75,000 Despite The US-Iran War?

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Bitwise Chief Investment Officer (CIO) Matt Hougan has explained why the Bitcoin price has shown strength amid the US-Iran war , with the leading crypto rallying above $75,000. BTC is notably up over 12% since the war started, outperforming the stock market and gold. Why The Bitcoin Price Has Rallied Above $75,000 Despite U.S.-Iran War In his weekly Bitwise memo , Hougan stated that the Bitcoin price strength during the US-Iran war stems from the conflict itself. He explained that BTC has outperformed gold and the stock market because investors are betting on either of the crypto’s two major use cases or narratives. The first narrative is that Bitcoin will become “digital gold” and so will be able to compete with physical gold in the $38 trillion “store of value” market. Related Reading Bitcoin Bulls Must Hold This Level Or Price Could Crash To $65,000 Again 3 days ago He noted that this is BTC’s current use case, and this narrative may be why the Bitcoin price has rallied amid the US-Iran war as investors see it as a safe haven rather than a risk asset. The Bitwise CIO described this bet on BTC as digital gold as very attractive and predicted that the leading crypto could reach $1 million if it captures 17% of the store-of-value market. Source: Chart from Bitwise Meanwhile, Hougan stated that the second bet on BTC is the belief that it might act like a traditional currency, suggesting that this is another reason that it is outperforming during this ongoing conflict. He noted that this second bet is like an “out-of-the-money call option” where it pays off if BTC is used more widely for international settlement. The Bitwise CIO stated that for most of Bitcoin’s life, it seemed unlikely that it would become a global currency, as until a few years ago, the world relied exclusively on dollar-based financial rails. However, that is now changing. He alluded to Iran receiving BTC for toll payments at the Strait of Hormuz, which has boosted the crypto’s status as a currency and contributed to the Bitcoin price rally. World Monetary Order Is Flipping In BTC’s Favor The Bitwise CIO noted that the US-Iran war has made the world monetary order more volatile, but has also increased the probability that Bitcoin will become a global currency . As such, the war has made BTC a more valuable out-of-the-money call option, which is why the Bitcoin price has shown strength during this period. Related Reading Why Did The Bitcoin Price Rally Past $75,000 Despite The US-Iran War? Just now Hougan added that with Iran’s move to accept BTC payments , the world has taken a step closer to integrating an apolitical currency into the global financial ecosystem. Therefore, whenever conflicts like the US-Iran war occur, the incentive to invest in apolitical assets like BTC increases, which serves as a catalyst for a higher Bitcoin price. At the time of writing, the Bitcoin price is trading at around $75,100, up in the last 24 hours, according to data from CoinMarketCap. BTC trading at $74,671 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Pngtree, chart from Tradingview.com