The rise of bitcoin (BTC) in the coming months is likely to be driven by international politics and the hunt for an investment hedge, even after a 10% weekly decline in confidence in the biggest cryptocurrency, according to some traders.
Cryptocurrency has long been seen as a potential hedge against geopolitical events, and was first developed in response to the 2008 financial crash. Despite BTC’s strong correlation with traditional market assets over the past few years, some traders argue that the hedging narrative is still viable.
Tensions between Iran and Israel escalated over the weekend, sending crypto markets into a tailspin as traders took profits ahead of the April 20 bitcoin reward halving & launch of Bitcoin Runes. The event, which will reduce network rewards by 50%, is set to take place on April 20.
Major tokens tumbled as much as 18 percent on the weekend, wiping out last week’s highs, before some of the losses were reversed on Monday. The decline resumed in early Asian trading on Tuesday as Israel pondered its response to Iran’s launch of over 300 drones and missiles into its territory.
