Apolitical Money

Geopolitical Noise

After briefly eclipsing $45k and $3.2k, both bitcoin and ether tumbled on Friday afternoon following indications from the US government that a Russian invasion of Ukraine was imminent. On Tuesday, these fears were quelled when reports surfaced indicating that troops were being removed from the Ukrainian border and crypto rebounded alongside equities.

At the time of writing, the global crypto market is slightly lower on the 7-day chart, with altcoins furthest out on the risk curve still trailing currencies.

Crypto-Natives Find a Safe Haven in Bitcoin

Despite persistent volatility seemingly contrary to its store-of-value premise, bitcoin generally performs “less bad” than other crypto assets during turbulent times. Thus, many crypto natives increase exposure to BTC during times of market consolidation or uncertainty. As expected, Bitcoin dominance has ticked up recently, surpassing 43% for the first time in three months.

Increased Demand for Apolitical Money in the Developed World

We have previously discussed how Bitcoin is viewed as two different asset-types by two very different cohorts of investors. In the developing world, some economies suffer from local inflation well north of the 7.5% in the US, making bitcoin an already-rel...