According to Andre Dragosch, geopolitics has accelerated a breakdown in the monetary order, shifting demand from sovereign bonds toward hard assets like gold and setting conditions favorable for Bitcoin BTC as a hedge. Dragosch cites the freezing of Russian foreign assets by G7 nations as the catalyst for a decoupling by major developing countries toward hard assets, reflected in the divergence between US real yields and gold prices, implying persistent bid for non sovereign collateral. Dragosch argues that a declining US trade deficit reduces foreign inflows into US capital markets, pressuring US Treasuries first, and raising the risk of a domestic central bank backstopping bond markets at the expense of the currency, a setup that typically supports scarce assets. Dragosch highlights Japan as a live example of rising yields alongside currency depreciation, a pattern associated with capital flight and eventual policy intervention that can further debase the currency, reinforcing the hard asset bid. Dragosch maintains that while gold and silver have already re-rated, Bitcoin is the ultimate trade due to finite supply, lack of counterparty risk, and apolitical design, though investor familiarity may delay adoption relative to gold, leaving a potential opportunity for staged allocation once other hedges are extended.

According to @glassnode, despite the uncertain macroeconomic environment due to shifting global trade relations, Bitcoin has maintained a strong performance, holding above $80,000. This stability is significant for traders as it suggests resilience in the cryptocurrency market. The report from Glassnode highlights that both Bitcoin and gold are performing remarkably well, with gold reaching a new all-time high of $3,300. These trends indicate a continued investor preference for hard assets during economic uncertainty.