How Bitcoin became a ‘lifeboat asset’ amid Ukraine-Russia conflict

While rising tensions between Ukraine and Russia signal a shift in the way investors perceive digital gold, Bitcoin has shown resilience.

Ukraine attacked Russian territory with US ATACMS missiles fired at a military facility after the Biden administration gave permission on November 19, the 1000th day of the ongoing conflict between the two countries.

Bitcoin (BTC) did not witness a bearish blow, unlike previous macro tensions. Instead, the flagship cryptocurrency rose to an all-time high of $94,000 with a market cap of $1.86 trillion.

BTC price | Source: crypto.news

Cory Klippsten, CEO of Swan Bitcoin, told crypto.news that this behavior may reflect the maturing Bitcoin store of value narrative.

“Traditionally, geopolitical instability causes investors to flock to safe haven assets such as gold or the dollar. But Bitcoin’s recent all-time highs suggest it has entered a new role as a hedge against both money printing and geopolitical risk.”

Klippsten said. big change

In February 2022, the Ukrainian crisis saw an 8% drop in Bitcoin price to $34,000 as the crypto market witnessed a $150 billion wipeout.

Similarly, the leading crypto asset fell 4% to $61,000 just hours after the escalation of the Israel-Iran conflict in October this year.

“As traditional markets continue to react to geopolitical volatility, Bitcoin stands as a counterpoint, a lifeboat for those seeking uncorrelated security,” Klippsten added.

Despite the slight correction in the latest ATH, Bitcoin is still trading at $92,500, up 1% in the last 24 hours. According to CoinGecko data, the global crypto market value decreased by 1.7% and reached $3.203 trillion.

Gold was up 0.1% at $2,636; still down 3.3% over the last 30 days. Crude oil WTI futures decreased by 0.09% to $69.17 per barrel.

Gold price | Source: Trading Outlook

Swan Bitcoin CEO believes Bitcoin’s recent ATH could potentially solidify it as the go-to asset in uncertain times. “We may be witnessing Bitcoin transition from a speculative asset to a macroeconomic haven,” Klippsten said.