11 hours ago
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Looking at its returns during past global conflicts, Bitcoin crashes when wars start but recovers within 50-60 days.
Data across 20 geopolitical events showing average gains of 31.2% as governments increase money supply to fund conflicts.
Bitwise research head Andre Dragosch earlier found Bitcoin often experiences short-term price drops when geopolitical risks arise, but within 50 days, price typically recovers and surpasses pre-event levels.
Across the top 20 major geopolitical risk events since July 2010, Bitcoin performed on average +31.2% after 50 days.
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Binance Research and BlackRock arrived at similar conclusions: Bitcoin has historically rebounded by an average of 37% within 60 days following major geopolitical incidents.
This pattern has repeated with striking regularity as Bitcoin matured.
During Russia’s February 2022 invasion of Ukraine, BTC plummeted from approximately $39,000 to $34,322 within hours.
By March 1, BTC had surged back to $44,000 as crypto trading hit premiums in Russia and Ukraine.
However, the longer-term picture showed a 65% crash over 2022 as the Fed launched aggressive rate hikes.
When Iran launched a retaliatory strike against Israel in April 2024, BTC dropped 8.4% on April 13. But volatility was only 3% on the day of the missile attack, less than one-third of the 2022 reaction.
Institutional presence fundamentally changed dynamics as BlackRock’s ETF saw massive inflows acting as a volatility buffer.
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The U.S.-Iran conflict triggered $358 million in crypto liquidations.
BTC initially dropped from around $68,000 to approximately $63,000, bounced to $68,000 by Sunday, then faded to $66,702 as traditional markets reopened.
The 2026 correlation data paints a sobering picture: Bitcoin’s correlation with gold turned negative at -0.27, while correlation with the Nasdaq surged to 0.75. Institutional risk models now treat Bitcoin as commodified risk rather than digital gold.
Dragosch explained that over the longer term, geopolitical conflicts raise prospects of higher inflation rates globally due to increased fiscal spending, looser monetary policy, and commodity price spikes, all of which benefit Bitcoin.
