In the latest trading session, Bitcoin and Ethereum posted
notable gains of 5–7%, signaling renewed optimism across the
cryptocurrency market. According to data from Binance, Bitcoin
surpassed the $75,000 mark, while Ethereum climbed to approximately
$2,361.
The total capitalization of the global crypto market reached
$2.55 trillion, underscoring the growing significance of digital
assets in the broader financial ecosystem.
Although cryptocurrencies have existed for years, they have
increasingly become a focal point for investors, institutions, and
policymakers alike.
At its core, cryptocurrency represents a form of digital money
designed to operate without centralized control. Unlike traditional
currencies issued by governments or central banks, cryptocurrencies
rely on decentralized networks and are powered by blockchain
technology – a distributed ledger that records transactions
securely and transparently.
In recent weeks, the crypto market has gradually emerged from a
period of relative stagnation. This recovery has been driven in
part by expectations of monetary policy easing from the U.S.
Federal Reserve, as well as moderating inflation across developed
economies. In this environment, investors are increasingly seeking
alternative assets to diversify their portfolios.
Despite its strengths, Bitcoin is not without significant
challenges. One of the most notable is its volatility. Prices can
rise or fall sharply within short periods, making it a risky asset
for investors who are unprepared for sudden market movements.
Energy consumption is also a widely discussed issue. The process
of mining Bitcoin requires substantial computational power, which
in turn consumes large amounts of electricity.
While transactions are traceable on the blockchain, the
identities of users are not always directly linked, which can be
exploited for illicit purposes.
A series of unsuccessful peace negotiations between the United
States and Iran has failed to bring an end to a month-long military
escalation in the Middle East. This ongoing instability has
heightened concerns over regional security, particularly around the
Strait of Hormuz – one of the world’s most critical corridors for
global oil transportation.
The sustained tensions involving the United States, Israel, and
Iran, which have persisted from late February through April, have
deepened global geopolitical fragmentation. As traditional
alliances and financial systems come under strain, pressure is
increasing on conventional cross-border settlement mechanisms. This
environment has, in turn, strengthened strategic interest in
non-sovereign and decentralized financial assets.
Against this backdrop, cryptocurrencies are gaining renewed
relevance. In Iran, tightening currency restrictions and persistent
devaluation pressures have contributed to a rise in domestic usage
of digital assets.
For the first time in history, Bitcoin surpassed gold during a
major military conflict. In the three weeks since the start of
Operation Epic Fury against Iran in February 2026, bitcoin has
grown by 8-10%, while gold has lost 12-14% – the worst week for the
yellow metal since 1983.
Gold and bitcoin are often compared as alternative stores of
value, but they differ significantly in history, structure, and
economic role.
In his comment for AzerNEWS, economist Natiq
Mammadov noted that bitcoin and gold are both seen as stores of
value, but they are very different. According to him, Bitcoin has a
fixed supply of 21 million coins, which helps protect it from
inflation. It is also easy to transfer globally and can be divided
into small parts. However, its price is very volatile, it is
relatively new (since 2009), and it depends on technology and
regulation. Gold has been used for thousands of years as a safe
store of value. It is more stable in price and widely accepted
worldwide. But it is heavy, expensive to store and move, and does
not generate income. Overall, Bitcoin is riskier but has higher
potential, while gold is more stable and reliable. Bitcoin may
become “digital gold” in the future, but today it is still
considered more speculative.
As an expert highlighted, Bitcoin cannot be controlled or
adjusted during economic crises because its supply is fixed.
Governments also prefer to keep control over their own national
currencies for economic policy and taxation. However, bitcoin can
still be useful for cross-border transfers, inflation-prone
countries, and as a store of value. In conclusion, Bitcoin is not a
replacement for traditional currencies, but it can work alongside
them as a digital financial asset.
Mammadov also said that Central banks like the Federal Reserve
and the European Central Bank use tools such as interest rates and
money supply changes to manage the economy. In countries with high
inflation, people may switch to bitcoin, which weakens local
currencies and reduces the effectiveness of central bank policies.
Bitcoin also makes cross-border money transfers easier, limiting
capital controls. In response, central banks are adapting by
developing digital currencies (CBDCs), improving regulation, and
monitoring crypto markets more closely.
Photo: BTSE blog
