The conflict in the Middle East has caused Bitcoin to fall alongside equities, while gold and oil have strengthened. As noted at the end of April, Bitcoin has yet to become a direct hedge against risk or a safe haven like gold. However, over the longer term, Bitcoin serves as a hedge against broader systemic risks such as monetary devaluation and capital controls.

Bitcoin fell by up to 5% over the last two days, largely driven by reports and rumors of escalating conflict between Israel and Iran—culminating in an Israeli attack on Iran. I agree with those who believe the market has not fully accounted for the risks of a wider war. In this week's episode of Token Narratives, I mentioned that if a general war breaks out, expect risk assets like Bitcoin and crypto to fall further.