Via JESSE COLOMBO
Today was yet another day marked by geopolitical turmoil, much like many others over the past year. This time, the turmoil was triggered by Iran launching at least 180 ballistic missiles toward Israel, marking the largest missile strike against Israel in history. Israeli Prime Minister Netanyahu declared that Iran has made a grave mistake and will face consequences as the world inches closer to all-out war with each passing hour. I hope for a peaceful resolution to this crisis, however unlikely that may seem. In this article, I’d like to share my observations on two assets often touted as safe havens—gold and Bitcoin—and how they perform during times of geopolitical crisis.
The chart below shows a tale of two assets: gold and Bitcoin. At approximately 9:32 AM EST, reports began circulating that Iran was imminently preparing to launch ballistic missiles at Israel. Interestingly, gold and Bitcoin responded in starkly opposite ways—gold surged while Bitcoin plummeted. This price action confirmed a long-standing frustration I have with Bitcoin: it behaves more like a risk asset than a true safe-haven. If Bitcoin were truly “digital gold,” I would expect it to rise during periods of geopolitical turmoil, not decline.
