Bitcoin Is Rising While Bonds and Stocks Struggle—Here's Why
Since the start of the Iran conflict, Bitcoin has gained around 6–6.5%, outperforming gold (up 1–1.5%) and equities (which have declined). This divergence is significant, reflecting Bitcoin’s appeal as a non-sovereign, censorship-resistant asset, especially during geopolitical instability. Technical indicators had already suggested Bitcoin was near a cycle low prior to the rally. Meanwhile, investors are pulling out of U.S. Treasuries, traditionally viewed as a safe haven, signaling reduced confidence in conventional assets as Treasury yields rise. Despite ongoing outflows from some digital asset funds, digital asset investment products have seen three consecutive weeks of net inflows, with $500 million deposited this week alone, suggesting institutional investors view Bitcoin as a resilient asset during geopolitical turbulence. However, not all digital assets may benefit: speculative sectors like meme coins may struggle if consumer spending falls, while stablecoin adoption in the U.S. continues to see strong political and regulatory support and remains insulated from these shocks.
