Bits + Bips: Is Crypto the Only Asset That Works When Geopolitics Breaks Down? - Unchained Recap

Podcast: Unchained

Published: 2026-03-04

Duration: 59 min

Summary

In this episode, the hosts discuss the recent U.S. military actions against Iran and their implications for the crypto market, highlighting how geopolitical tensions can affect asset prices and market dynamics. The conversation centers around the resilience of crypto in times of conflict and the broader economic ramifications of warfare.

What Happened

The episode kicks off with a deep dive into the recent U.S. airstrikes in Iran, part of an operation called Epic Fury, which marked a significant escalation in U.S.-Iran tensions following the confirmed death of Supreme Leader Ayatollah Khomeini. The hosts, led by Austin Campbell, explore the immediate market reactions, noting that while oil prices surged due to increased geopolitical risk, Bitcoin and other risk assets initially dipped but quickly rebounded, with Bitcoin touching $70,000. The discussion highlights the complex interplay between military actions and financial markets, particularly in energy and consumer sectors.

Ram Alawalia shares insights on how war typically impacts market sectors, noting the rise in oil prices and the downturn in consumer discretionary stocks, like airlines. He points out that the markets had already been positioning themselves in anticipation of conflict due to prior signals about U.S.-Iran relations. Chris Perkins emphasizes the resilience of crypto during such geopolitical events, arguing that decentralized networks like Bitcoin are less vulnerable to direct impacts from military actions. He also discusses the strategic importance of the Strait of Hormuz and the potential implications for global oil supply and geopolitical dynamics, particularly regarding China’s dependence on oil from the region.

Key Insights

Key Questions Answered

What were the implications of the U.S. airstrikes on Iran?

The U.S. airstrikes on Iran, part of Operation Epic Fury, marked a significant escalation in tensions and resulted in the confirmed death of Supreme Leader Ayatollah Khomeini. The immediate fallout included Iran retaliating with missile strikes on U.S. bases and other targets across the Gulf region. This escalation has raised concerns over regional stability and the potential for wider conflict.

How did the markets react to the news of the airstrikes?

Initially, oil prices surged as traders reacted to the heightened geopolitical risk, while Bitcoin and other risk assets experienced a slight dip before rebounding. The hosts noted that Bitcoin tapped $70,000, indicating a quick recovery despite initial fears. Gold also saw a rise, reaching $5,400 an ounce, demonstrating that precious metals often gain traction during times of uncertainty.

What sectors were most affected by the conflict in Iran?

Ram Alawalia pointed out that industries relying on oil, like consumer discretionary sectors including airlines and travel, saw a downturn due to rising oil prices. Conversely, the energy sector performed well, with energy-related stocks and ETFs leading the market. This illustrates how conflict can create winners and losers across different market sectors.

What does Chris Perkins say about crypto's resilience during geopolitical crises?

Chris Perkins emphasized the resilience of crypto, stating that its decentralized nature means that it cannot simply be targeted in the same way as traditional assets. He noted that even amidst warfare, the crypto networks continue to operate, highlighting a fundamental strength that differentiates crypto from other markets during times of conflict.

What are the broader implications of the conflict for global oil supply?

The Strait of Hormuz is critical, controlling 20% of the world's oil, and the recent events underscore its strategic importance. Chris Perkins pointed out that the U.S. may gain more control over oil supply routes previously dependent on Iranian and Venezuelan oil. This could have significant implications for global energy markets, especially for countries like China that rely heavily on these oil supplies.