Bitcoin Shines as Macro Volatility Looms
A recent study analyzed how $10,000 would perform in a hypothetical investment during a macro shock scenario. The results highlighted a significant divergence between Bitcoin and traditional safe-havens like gold and silver.
During the US-Iran conflict, Bitcoin displayed stronger resilience than precious metals, with a hypothetical $10,000 investment growing to $11,762. In contrast, investments in gold and silver would have hit $8,200 and $7,310 respectively.
This is notable because metals usually act as safe-havens during macro uncertainty. However, in this scenario, Bitcoin was able to outperform both gold and silver, presenting a different risk-reward profile.
The study also pointed out that the 10-year Treasury yield has been climbing ahead of the FOMC meeting, which could add another layer of volatility for risk assets. Interestingly, every time the 10-year Treasury yield climbed in the last four times, Bitcoin responded with a parabolic movement.