Bitcoin Struggles to Surpass $90K Amid Geopolitical Fears, Trump Crypto Summit Looms. – CryptoMode
The price of Bitcoin (BTC) has kept on flip-flopping over the past few weeks, having earlier this year failed to remain above the $100,000 mark and subsequently plunging below $80,000 amid growing trade war fears and geopolitical tensions.
BTC has, however, recently managed to briefly recover the $90,000 mark to at the time of writing, trade around $88,500 after a short correction over a highly expected White House crypto summit, in which President Donald Trump will participate along with key industry figures.
Risk assets, a category in which cryptocurrencies often find themselves in, are generally trading lower over growing geopolitical risks that include European plans for a massive expansion in defense spending as the United States distances itself from Ukraine after Trump had a public spat with the country’s President, Zelensky.
Over the past week, the stock market’s benchmark index, the S&P 500, dropped by around 3.3%, while the tech-heavy Nasdaq index dropped by 4.6%.
“Given the strong link between BTC and US tech stocks, Bitcoin’s long-term recovery depends on the NASDAQ100’s ability to trend higher,” said analyst Stefan Luebeck on social media. “Conclusion: In the aftermath of NVDA falling to the lowest level since September, officially entering a bearmarket, Bitcoin and the Cryptomarket took a hit too.”
Bitcoin as a Hedge Against Geopolitical Risk
While Bitcoin and other cryptocurrencies often trade like risk assets, investors who allocate into these tokens often see them as a hedge against geopolitical and other types of risk associated with centralized markets.
Last year, for example, the world’s largest asset manager, BlackRock, viewed BTC as a “global, decentralized, and non-sovereign asset” that could serve “as a hedge against increasing global disorder and declining trust in governments, banks, and fiat currencies.”
BlackRock, it’s worth noting, has been promoting its spot Bitcoin exchange-traded fund IBIT heavily. Earlier this year, it became one of the largest ETFs in the world by assets under management.
