BTC volatility driver shifting from macro to geopolitical risk, says analyst

The primary driver of Bitcoin's price volatility is shifting from macroeconomic indicators to geopolitical variables amid rising tensions in the Middle East, according to a new analysis. DL News reported that James Butterfill, Head of Research at CoinShares, said the influence of traditional macro data such as interest rate outlooks and employment figures has weakened, while geopolitical risk has emerged as a new key variable. He noted that the deepening conflict between the U.S., Israel, and Iran is acting as a bullish factor for Bitcoin, with investors choosing the asset as a hedge against geopolitical uncertainty. Since the U.S.-Iran conflict began, Bitcoin has risen approximately 6%, while gold has gained only about 1% and global stock markets have trended lower. Butterfill added that this is significant because it runs contrary to the typical behavior of risk assets.