Bitcoin has shown a notable gain of approximately 6% since the onset of the Iran crisis, significantly outperforming gold and equities. This trend suggests a shift in investor sentiment away from traditional safe-haven assets.
Rising Treasury yields indicate that investors are increasingly losing faith in U.S. Treasuries as a primary safe haven during times of geopolitical uncertainty. Historically, rising yields signal a decline in demand for these bonds, as investors pull back.
Meanwhile, digital asset investment products have experienced three consecutive weeks of net inflows, totaling $500 million so far this week. This sustained institutional interest suggests that Bitcoin is being treated as a viable asset to hold through turbulent geopolitical periods, rather than an asset to divest from. While speculative and meme coins may face headwinds, stablecoin adoption continues to gain momentum, largely insulated from geopolitical shocks.