Bitcoin continues to demonstrate resilience, climbing 656% since the start of its cycle in 2022, despite a challenging geopolitical environment.
Strong Demand for Bitcoin Despite a Less Explosive Cycle
According to the Glassnode report, Bitcoin has recorded a 656% increase since the beginning of its current cycle in 2022. While this figure is less impressive compared to previous cycles (+1076% and +1007% from 2015-2018 and 2018-2022 respectively), it remains significant given the asset's maturity. 'Generally, assets see their exponential growth potential decrease as their valuation increases,' the report states.
A Safe Haven Amid Geopolitical Crises
The analysis from Glassnode arises during a tense geopolitical context. Despite Israeli strikes on Tehran, Bitcoin only dropped 3% and then stabilized around $106,000, contrasting with declines in traditional markets. 'Bitcoin is no longer seen as a speculative asset, but as a hedging tool against monetary and geopolitical instability,' the report notes. A net inflow of $1.3 billion into Bitcoin ETFs demonstrates ongoing institutional interest.
Conclusion: Bitcoin as a Mature Financial Asset
Bitcoin's cyclical gain of 656% underscores its evolution into a mature asset capable of generating substantial returns. Its resilience against geopolitical tensions confirms its status as an alternative to traditional safe haven assets.
Bitcoin, demonstrating its resilience and significant increase, clearly indicates its role as a reliable investment tool amid growing instabilities.
