The first cryptocurrency has fully recovered from its decline due to geopolitical tensions and macroeconomic instability. An analyst known as CryptoTalisman described this trend as a historical pattern.

During global shocks, digital gold often depreciates alongside other risky assets due to mass sell-offs. However, the price eventually stabilizes, and the coin begins to rise faster than the market: capital flows into Bitcoin as a neutral store of value.

This scenario has been observed in 2020 and 2022. During those times, trading volumes of digital assets surged in response to the weakening of national currencies. A loss of trust in traditional financial institutions typically increases interest in decentralized alternatives.

In an environment of high inflation and strict capital controls, Bitcoin becomes a tool for financial freedom and a hedge against fiat devaluation, shedding its status as merely a speculative asset.

If economic pressures intensify, shifting to solid assets will be the most logical step. "Smart money" is already buying Bitcoin now, without waiting for widespread media coverage of this trend, CryptoTalisman concluded.

At the time of writing, the first cryptocurrency is trading at $65,799 (-2.2% over the past day).

15-minute BTC/USDT chart from Binance. Source: TradingView.

Hayes' Opinion

Former BitMEX CEO Arthur Hayes believes that the Federal Reserve will shift to easing monetary policy to fund U.S. foreign policy initiatives. He argues that this will inevitably lead to a rise in the crypto market.

In a new essay, Hayes pointed out a historical pattern: during major international crises in 1990, 2001, and 2009, the regulator always responded by lowering interest rates and increasing the money supply.

The current political tensions will require significant budget infusions. According to the expert, the longer the uncertainty lasts, the greater the chance of the "printing press" being activated to support the economy.

Until then, Hayes advises investors to remain cautious. It is impossible to predict how long the government will spend billions on foreign objectives and what level of financial market downturns authorities will consider acceptable.

"The time to buy Bitcoin and quality altcoins will come right after the Fed lowers rates or prints money to implement government plans," he emphasized.

What Does 'Rich Dad' Say?

Entrepreneur Robert Kiyosaki again highlighted the need for investments in solid assets. He stated that during periods of macroeconomic instability, large capital always seeks protective instruments.

The investor noted the sharp rise in precious metal prices. At the time of writing, gold is priced at $5,408 (+2.47% over the past day), and silver at $95.61 (+2.02%).

Source: Gold Price.

Kiyosaki emphasized that global markets and inflation levels are directly influenced by control over energy resources. Fluctuations in fuel prices lead to the weakening of national currencies and a rise in defense sector stocks.

"Financially literate people track the movement of money and incentives, not the speeches of politicians," he noted.

He illustrated the vulnerability of fiat systems with examples from developing countries, whose currencies have nearly completely devalued.

According to Kiyosaki, gold and silver are not meant for quick wealth accumulation. Their main and sole purpose is to reliably protect savings from inflation and uncontrolled issuance of paper money.

Recall that on March 1, JAN3 CEO Samson Mow predicted a rise in Bitcoin due to an overheated gold market.