Bitwise Predicts Bitcoin Could Reach $140,000 After Geopolitical Tensions

Bitwise Asset Management's European research arm suggests that the recent sell-off in Bitcoin, following military escalations between Iran and Israel, could lead to a significant relief rally for the cryptocurrency. Historical data indicates that Bitcoin has risen an average of 31.2% within fifty days after major geopolitical events.

Bitcoin's price currently stands around $107,000; a 31% increase could push it to approximately $140,000.
The authors highlight historical parallels, noting swift recoveries after previous geopolitical shocks.
The firm's Crypto Asset Sentiment Index recently turned negative but rebounded into bullish territory due to renewed inflows into spot ETFs and US dollar weakness.
Geopolitical tensions have caused a shift to safer assets; gold reached a record high of $3,430 per ounce amid rising Brent crude prices.
US spot Bitcoin ETFs saw a net inflow of $1.37 billion last week, with notable corporate acquisitions reported.
The put-call open-interest ratio on Bitcoin options ended at 0.61, indicating demand for upside exposure.
Whales withdrew a net 169,527 BTC from exchanges, tightening spot liquidity.

Despite concerns about past performance not being indicative of future results, Bitwise remains optimistic about structural demand, dollar depreciation, and macroeconomic conditions supporting potential gains for Bitcoin.

At press time, BTC traded at $107,239.

Bitcoin price