Bitcoin Gains Attention Amid Rising Geopolitical Tensions

Bitwise argues geopolitical tensions could transform bitcoin from a passive "digital gold" into an active monetary tool used in strategic state-level transactions, potentially boosting demand and valuation. Bitwise cites a concrete scenario—Iran imposing a $1-per-barrel bitcoin toll in the Strait of Hormuz—equating to roughly $20 million/day in flows. Under Bitwise’s valuation, if BTC captures 17% of a $38 trillion store-of-value market its price could reach $1,000,000; assuming added currency-like use would further expand the addressable market. The note frames this outcome as a low-probability, high-upside “call option” that would render current models obsolete if realized. Market impact: increased sovereign or transactional demand tied to geopolitical fragmentation would be materially bullish for BTC but remains contingent on complex political, regulatory and operational factors.