Bitcoin's Resilience Amid Geopolitical Tensions and Economic Uncertainty

According to Cointelegraph, Bitcoin has demonstrated notable resilience in the face of geopolitical tensions and economic uncertainty, particularly following recent tariff announcements by U.S. President Donald Trump. Blockstream CEO Adam Back highlighted Bitcoin's performance during these turbulent times, noting its potential to diverge from traditional risk-on assets like stocks in the long term. Back, a prominent figure in Bitcoin's early development and one of the original cypherpunks, shared his insights during an interview at Paris Blockchain Week. He emphasized Bitcoin's significant growth, stating that it has increased five or six times since the market bottom three years ago. This growth, he argues, indicates a decoupling from other financial markets. Back predicts that Bitcoin will benefit from factors such as regulatory clarity, institutional interest, and the legitimizing impact of exchange-traded funds (ETFs). He observed that while many long-term holders are fully invested and unable to capitalize on market dips, major entities like BlackRock and sovereign wealth funds are quietly acquiring Bitcoin, absorbing available supply. Back also explored the geopolitical implications of Bitcoin, suggesting that governments might start acquiring the cryptocurrency actively. He speculated that if the U.S. government does not initiate a significant buying spree, acquiring 1 million Bitcoin over the next five years, it could allow new market entrants to establish substantial positions through brokers and ETFs. Despite the short-term volatility, Back remains optimistic about Bitcoin's mid-term prospects, noting that bull markets typically experience several significant drops, which he believes is the current phase.