Bitcoin traders maintain a neutral sentiment despite the uptick in geopolitical tension and uncertainty within world markets.
Bitcoin (BTC) declined by 8.3% between Sept. 30 and Oct. 1, reaching a two-week low of $60,207. Despite a modest recovery to $61,300 on Oct. 2, Bitcoin’s price remains 16.6% below its March 2024 all-time high, whereas gold and the S&P 500 are each within 2% of their recent record levels.
Given Bitcoin’s underperformance, one might expect traders to adopt a bearish stance; however, BTC derivatives metrics suggest otherwise. Some analysts argue that socio-political uncertainties could negatively impact its short-term price. Historically, Bitcoin tends to outperform other asset classes following major events, indicating potential resilience despite current market pressures.
Bitcoin vs. gold and S&P 500 returns after geopolitical events. Source: BlackRock
