Geopolitical shockwaves are hitting Bitcoin
Why your traditional volatility models are now obsolete
As a recovering Chief Compliance Officer and finance executive in the Bitcoin space; I can see the writing on the wall, and the narrative boasting bitcoin as uncorrelated to macro risk is broken. Perpetual rumors of global trade wars have introduced additional volatility to markets that cannot be adequately priced by most Institutions.
Historically, bitcoin’s narrative has been that of a hedge against monetary policy risks like inflation caused by quantitative easing (money printing). In actuality today, nation state level actions like sanctions, tariffs, and capital controls are creating forced, large-scale, asset liquidation events, by public and private institutions, which translate directly into market instability. For large capital allocators, this means that the due diligence process must now explicitly model geopolitical risk within their crypto custody and trading frameworks; plain evidence why decentralized finance, censorship resistant transactions, on chain cross chain swaps are necessary.
Portfolio Managers must now strategically update their diversification model to try and price unexpected geopolitical trade risks; what could previously be assumed in risk models as a piece of the “systemic” risk that can never be defeated; is now a larger monster, a fire breathing dragon. High-volume, private trades executed through concierge services like BuyBitcoinOTC.com are critical when exiting or entering positions quickly to mitigate the risks of global price shocks.
Do you have a clear and compliant strategy for mitigating a sudden -20% geopolitical move in the market? Book a private 20-minute Zoom call to discuss how your large-scale trades can be executed with precision and full regulatory oversight.