BTC Wealth Report – Issue 10

👋 Welcome to BTC Wealth — Issue 10

✈️ War Broke Out. Bitcoin Dropped. What Did We Learn?

Bitcoin flirted with all-time highs again… until WW3 headlines hit.

Israel bombed Iran. Markets panicked. Bitcoin dropped 4%.

The moment was bigger than Bitcoin price action — but it raised a question Bitcoiners love to argue about:

Is Bitcoin a safe haven asset?

In theory, this is exactly what Bitcoin was built for:

• A hedge against geopolitical instability

• Hard money with no credit risk

• An exit from the fiat system

But… price action didn’t agree.

So what’s the truth? Is “flight to safety” Bitcoin hopium?
Or is there a deeper story here?

Let’s unpack it. 👇

🧱 What Is a Safe Haven Asset Anyway?

People throw around “flight to safety” like it explains itself.

Let’s define it properly.

It’s where capital hides when everything else is on fire.

Traditionally: U.S. Treasuries. Gold. The dollar.

Now Bitcoin wants a seat at that table.

🧪 Schrödinger’s Safe Haven: Bitcoin Is and Isn’t

In 1935, Erwin Schrödinger proposed a quantum paradox:

A cat in a sealed box is both alive and dead… until someone opens the box.

Right now, Bitcoin is that cat.

It is — and isn’t — a safe haven asset.
It just depends on how you look.

When You Look at immediate price movements

🚫 Bitcoin didn’t act like a safe haven.
The moment Israel launched strikes, Bitcoin dumped.

In that moment, capital ran from Bitcoin — not to it.

From this lens, Bitcoin is just another risk asset.

And yet….

Bitcoin is structurally different

🟠 Bitcoin is designed like a safe haven.

Bitcoin is:

• Scarce

• Borderless

• Free of counterparty risk

• Outside the traditional system

Bitcoin is built to survive chaos. And historically, it thrives in the aftermath.

So why does it sell off when the world gets messy?

💡 Bitcoin Is Liquid — and That’s a Double-Edged Sword

When crises hit, people don’t sell what they want — they sell what they can.

Bitcoin trades 24/7. There’s always a bid.

That makes it the market’s emergency ATM.

It’s a feature — and a curse.

🧍 It’s Also Still Misunderstood

Traders don’t instinctively rotate into Bitcoin when war breaks out.

Not yet.

But they will.

Bitcoin isn’t reflexively treated like a safe haven.
But it repeatedly proves itself to be one.

📈 Zoom Out — and the Thesis Holds

BlackRock put it plainly in their recent report on Bitcoin as a diversifying asset:

Bitcoin tends to do well in the wake of crises.

• Traders sell the news

• Investors buy the chaos

And they’ve been doing it more and more as the narrative matures.

📊ETF Flows: Structural Demand Doesn’t Flinch

It was a choppy week for price — but ETF flows were rock solid.

📈 U.S. ETFs added 12,713 BTC on the week.

Here’s the breakdown:

• 🟢 BlackRock (IBIT): +10,318 BTC

• 🟢 Bitwise (BITB): +757 BTC

• 🟢 Fidelity (FBTC): +719 BTC

But here’s the most important stat:

📆 On Friday — the day markets reacted to the Israel–Iran escalation — ETFs bought 2,648 BTC.

That’s smart money. Watching. And buying.

Not a selloff — a signal.

🧠 Final Thoughts

Bitcoin doesn’t always act like a safe haven in the moment.

But structurally it’s built like one.

It’s scarce, borderless, unencumbered — and every crisis chips away at the disbelief.

It doesn’t need to spike when the bombs fall.
It just needs to hold strong — and rally when the dust settles.

The smart money gets that.

And the price always catches up.

That’s your BTC Wealth Report this week.

Found this valuable? Share it with your friends. It helps more than you think.

Thanks for reading,
— Thomas Fahrer