Here are some of the reasons why Bitcoin (BTC) is gaining popularity in the midst of the current geopolitical upheaval.

Cryptocurrency is now a more widely accepted component of the global financial system. This implies that, for better or worse, it is inextricably linked to international conflict. This is on full display with Russia's incursion into Ukraine. This conflict has caused some price movement for Bitcoin investors recently.

For a long time, Bitcoin and its crypto peers have traded in a more inverse relationship to equities. This has resulted in a one-of-a-kind situation in which Bitcoin has been a higher-volatility play on the market for the most part. This has not been a good thing given the general direction of the market. Today, we can see this in action, with Bitcoin down more than 7% as the market falls.

However, Bitcoin has recently diverged from the overall market in a positive way. Let's take a look at whether that can continue and what might be causing it.

Trading volumes between bitcoin and rouble have reached their highest level since May

Given the ongoing conflict and the sanctions imposed on Russia, an increase in trading volumes coming out of Russia is perhaps unsurprising. As a result of this news, the BTC-RUB trading pair experienced its highest transaction levels since May. The desire to get money out of the rouble as quickly as possible appears to be the driving force behind this move.

The Russian rouble recently hit an all-time low. Sanctions have had a significant impact on the Russian economy. As a result, investors considering Bitcoin as a possible hedge against this war have some data to back up their claim that this is what is happening right now.

In times of geopolitical upheaval, this can be a useful asset

Bitcoin's outperformance in the face of recent volatility has reignited the bull thesis that Bitcoin could be a market hedge. Whether true or not, this sentiment has allowed Bitcoin to outperform the market in recent weeks. As a result, how Bitcoin behaves in the future will continue to be a major concern for many investors.

At the moment, I believe it is premature to claim that Bitcoin is a good hedge against anything. This token represents a volatile asset class. However, in these times of geopolitical uncertainty, the potential relative stability that Bitcoin can provide is certainly worth investigating.

Ultimately,

Bitcoin is still the world's most popular and well-known cryptocurrency. There are numerous reasons why investors own Bitcoin, including as a store of value and a potential portfolio diversifier.

However, one of the more intriguing hypotheses underlying this token recently is that Bitcoin may provide some hedging value in light of the macro situation. Time will tell if this thesis proves to be correct. But, at the very least, it's a fascinating discussion to have.

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