Bitcoin’s Performance in Times of Global Unrest—Crypto and Chaos

During this period of widespread protests across the U.S. and escalating tensions globally, Bitcoin is displaying resilience as it maintains a value near $84,000. Questions are arising once again regarding the role of Bitcoin during times of significant global instability. Unlike traditional markets that typically retreat during times of crisis, Bitcoin often behaves differently, sometimes reacting positively to uncertainty while on other occasions dropping in correlation with stocks. Investors are closely observing to see whether Bitcoin will function more as a safe haven or a speculative asset as unrest continues to escalate.

Over the years, Bitcoin has demonstrated sharp and sometimes unexpected movements during moments of stress on a global scale. In 2020, during the COVID-19 crash, Bitcoin plummeted by over 50% in March, only to rebound and emerge as the leading asset class by the end of the year. In 2022, amidst the Russia-Ukraine conflict, Bitcoin experienced an initial decline and subsequently surged as Russians and Ukrainians turned to crypto amid currency instability. In 2023, escalating tensions in the Middle East led to investments flowing into safe havens such as gold and Bitcoin to a lesser extent. Similarly, in 2024, during the U.S. election uncertainty, Bitcoin volatility surged as investors reacted to changing policies and increasing civil tensions.

Bitcoin is not merely a currency; it is a multifaceted macro asset. This complexity affects its price fluctuations during periods of global unrest for various reasons. The decentralized nature of Bitcoin is appealing during times of distrust towards institutions. Liquidity needs often lead investors to liquidate their cryptocurrency holdings for cash during crises. Bitcoin sometimes follows the trends of equities but can quickly detach based on narrative shifts. Additionally, whale behavior and wallet flows can swiftly change in volatile environments, influencing Bitcoin’s movement.

According to a crypto strategist named Marina Ellis from BlockEdge Analytics, “Bitcoin can swing either way in a crisis — it depends on whether the narrative is fear or freedom.” Presently, Bitcoin is maintaining a range between $82,900 and $83,400. Market observers are particularly focused on net inflows in ETFs, which are positive, indicating ongoing institutional confidence. Whale wallet activity shows no significant sell-offs, as per on-chain analytics. While gold has increased by 0.7% today, Bitcoin has remained stable, potentially setting the stage for divergence.

As unrest continues to escalate, Bitcoin could disengage from equities and regain its reputation as a hedge against volatility. As the world becomes increasingly unstable, the performance of Bitcoin during periods of global turmoil provides valuable clues about its future role. Whether it is viewed as digital gold or a volatile tech asset is likely to hinge on the extent of chaos ongoing.