Bitcoin often follows a "dip then rip" pattern during economic or geopolitical crises. Initially, panic selling causes Bitcoin’s price to drop as investors rush to liquidate assets. However, as uncertainty settles, Bitcoin rebounds sharply, attracting those looking for a decentralized store of value.
According to Bitwise CIO Matt Hougan, this behavior highlights Bitcoin’s unique dual nature: it reacts to short-term shocks but ultimately benefits from instability in traditional markets. Investors seeking a hedge against systemic risks often drive its recovery.
This cycle showcases Bitcoin’s resilience and its growing role in global finance.