The leading cryptocurrency has fully recovered from declines caused by geopolitical tensions and macroeconomic instability. An analyst known as CryptoTalisman described this trend as a historical pattern.
During global shocks, digital gold often depreciates alongside other risky assets due to mass sell-offs. However, the price eventually stabilizes, and the coin begins to outpace the market: capital flows into bitcoin as a neutral store of value.
A similar scenario occurred in 2020 and 2022. At that time, trading volumes of digital assets surged in response to the weakening of national currencies. A loss of trust in traditional financial institutions typically increases interest in decentralized alternatives.
In an environment of high inflation and strict capital movement controls, bitcoin becomes a tool of financial freedom and a hedge against fiat devaluation, shedding its status as a purely speculative asset.
If economic pressure intensifies, shifting to hard assets will be the most logical step. “Smart money” is already buying bitcoin, not waiting for this trend to gain widespread media coverage, CryptoTalisman concluded.
At the time of writing, the leading cryptocurrency is trading at $65,799 (-2.2% over the past day).
Hayes’s Perspective
Former BitMEX CEO Arthur Hayes believes that the Fed will shift to a looser monetary policy to finance U.S. foreign policy initiatives. In his view, this will inevitably lead to a rise in the crypto market.
In a new essay, Hayes pointed to a historical pattern: during major international crises in 1990, 2001, and 2009, the regulator always responded by lowering the key rate and increasing the money supply.
The current political tension will require substantial budgetary injections. According to the expert, the longer the uncertainty lasts, the higher the chance of the “printing press” being activated to support the economy.
Until then, Hayes advises investors to remain cautious. It is impossible to predict precisely how long the government will spend billions on foreign objectives and what financial market downturns the authorities will deem acceptable.
“The time to buy bitcoin and quality altcoins will come immediately after the Fed cuts rates or prints money to implement government plans,” he emphasized.
What Does ‘Rich Dad’ Say?
Entrepreneur Robert Kiyosaki once again highlighted the necessity of investing in hard assets. According to him, during periods of macroeconomic instability, large capital always seeks protective instruments.
The investor noted a sharp rise in the prices of precious metals. At the time of writing, gold is priced at $5408 (+2.47% per day), and silver at 95.61 (+2.02%).
Kiyosaki stressed that global markets and inflation levels are directly dependent on control over energy resources. Fluctuations in fuel prices lead to the weakening of national currencies and a rise in defense sector stocks.
“Financially literate people follow the flow of money and incentives, not political speeches,” he noted.
He illustrated the vulnerability of fiat systems with the example of developing countries whose currencies have almost completely devalued.
According to Kiyosaki, gold and silver are not meant for quick enrichment. Their primary and sole purpose is to reliably protect savings from inflation and uncontrolled issuance of paper money.
Back in March, JAN3 CEO Samson Mow predicted a rise in bitcoin due to an overheated gold market.