While Bitcoin may not offer reliable protection from geopolitical risks, Standard Chartered advises that the cryptocurrency still presents a good buying opportunity for long-term investors. Despite its reputation for volatility and its failure to act as a safe haven during global crises, the bank believes current price levels could be advantageous for those looking to invest with a longer-term perspective.
Recent geopolitical tensions have created instability in traditional financial markets, but Bitcoin has not shown the same resilience as assets like gold or US Treasuries, which typically thrive in times of uncertainty. According to Standard Chartered, while Bitcoin has often been compared to digital gold, it hasn’t yet proven itself as a reliable store of value during periods of global turmoil.
Despite this, the bank remains optimistic about Bitcoin’s future. They highlight that the cryptocurrency’s growing role in institutional investment portfolios and its long-term potential suggest that its current price slump may be an attractive entry point for investors. “While geopolitical risks may not support Bitcoin in the short term, its broader investment appeal remains intact,” the bank’s analysts said.
Though Bitcoin may not be the safe haven some investors seek during turbulent times, Standard Chartered insists that its volatility creates opportunities for those willing to withstand the market’s fluctuations. The “buy the dip” strategy continues to be relevant as institutional interest in Bitcoin expands and adoption increases.
For now, more traditional assets may serve as safer options during geopolitical uncertainty, but Bitcoin’s long-term outlook still makes it an appealing choice for investors who can tolerate its price swings.
