Geopolitical events and the search for an investment hedge led some traders to say bitcoin could surge in the coming months, despite a recent 10% weekly drop in its value.
Bitcoin has long been considered a possible hedge against geopolitical events and was originally created in the wake of the 2008 financial crisis. Some traders say the hedging narrative remains viable despite BTC being highly correlated with traditional market assets for several years. “The ETF is currently spearheading this Doomsday rally and we should expect $120,000 to be hit in the coming months as global geopolitics continues to deteriorate and the middle classes continue to find ways to protect their wealth,” Hindi said.
Major tokens lost as much as 18% on the weekend compared to last week’s peak prices before reversing some of the losses on Monday. The slide resumed in Asian morning hours on Tuesday as Israel considered its response to Iran's firing of more than 300 drones and missiles at its territory.