Bitcoin (CRYPTO: BTC) has been flat to slightly up during the Iran conflict while stocks, bonds, and gold all sold off, according to ProCap Financial CEO Anthony Pompliano.

The Iran Outperformance

Bitcoin has been the shining light over the Iran conflict, Pompliano explained. Stocks are down, bonds are declining, and gold is falling, yet Bitcoin has been flat to slightly up.

Over the last year, the opposite occurred—Bitcoin fell while those assets rose. 

The recent divergence challenges the narrative that Bitcoin simply tracks beta to risk assets, suggesting holders view it differently during geopolitical chaos.

“I think that there’s a little bit of light at the end of the tunnel for Bitcoin investors who have been taking a couple of beatings,” Pompliano said.

The Volatility Compression

Bitcoin’s volatility has significantly compressed from an 80-90 vol asset to around 40 vol. The asset drew down 50%, consistent with that volatility environment.

Many Bitcoin holders say they like the asset at $60,000, and the geopolitical uncertainty actually makes them want to own more rather than less because Bitcoin is neutral and isn’t subject to any one country.

The Mass Adoption Reality

The buying comes from individuals, companies, ETFs, and countries—what mass adoption actually looks like, Pompliano explained.

While sovereign wealth funds haven’t engaged in chaotic, enthusiastic hand-over-fist buying at central banks, allocations exist that didn’t two years ago. 

Gulf countries are doing joint ventures on the mining side, and sovereign wealth funds have taken positions in ETFs.

The process unfolds slowly and then all of a sudden, which is likely what Bitcoin adoption will look like going forward.

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