Bitcoin's plunge — and subsequent rebound — following Iran's attack on Israel was predictable.
Asset management giant BlackRock advised cryptocurrency investors that geopolitical events could have such an impact on markets in a nine-page report.
Bitcoin, the top cryptocurrency with a $1.2 trillion market, has yet to fully recover its value, with BlackRock suggesting it's only a matter of time. Bitcoin is trading at $61,190, down 2.3% in the past day. CoinGecko.
Released in September, Larry Fink's laser-eyed Bitcoin Screed retold the tried-and-tested pitch that Bitcoin, like gold, is an excellent hedge against events in the Middle East today.
That's because the chart in the report shows how Bitcoin made a double-digit rally 60 days after major geopolitical events, including a US airstrike on one of Iran's military commanders in 2020 and Russia's invasion of Ukraine in 2022.
For example, 60 days after the airstrike, Bitcoin rose 20%, while gold rose only 6%. The S&P 500 fell 7% during the same period.
Stick it on your wall and come back in 60 days pic.twitter.com/ipxifRvtyX
— James Van Straten (@btcjvs) October 1, 2024
Stick it on your wall and come back in 60 days pic.twitter.com/ipxifRvtyX
— James Van Straten (@btcjvs) October 1, 2024
Here's why BlackRock, the $10 trillion investment firm that manages the industry's largest spot bitcoin exchange-traded fund, recommends a “modest allocation” to diversify investors' portfolios.
BlackRock's analysis means crypto investors will have to wait until November 30. BlackRock is not alone.
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“These medium-term correlations with risk-on assets reflect current investor sentiment towards cryptocurrencies,” said Jacob Joseph, senior research analyst at CCData. News.
“As Bitcoin adoption grows and it is increasingly viewed beyond its speculative nature, it has the potential to evolve into a global monetary alternative or a diverse portfolio diversifier, as noted in BlackRock's latest report.”
Crypto market movers
Bitcoin is down 2% to $61,196 in the last 24 hours. Ethereum fell 4% to $2,437.
What we are studying:
OpenSea axed NFTs that behaved like securities for years before SEC scrutiny — NewsHow North Korea infiltrated the crypto industry – CoinDeskEigenLayer's EIGEN token unlock goes live with $7.2bn FDV – Not boundFranklin Templeton's onchain money market fund launched at Aptos – The BlockDeFi cuts crypto theft by a quarter as hacks total $2bn this year – News
Liam Kelly is a DeFi Correspondent News. arrive at [email protected].
