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Ulviyya Poladova

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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