Part 6/8:
A significant caveat to further reallocating funds into assets such as Bitcoin is market uncertainty. Bitcoin tends to flourish during times of market confidence, and heightened uncertainty drives investors away from risk assets. The VIX, or the volatility index, remains a barometer for such investor sentiment. A rising VIX typically suggests increasing uncertainty, showing Bitcoin’s price tends to struggle during these times.
Geopolitical tensions and economic volatility, particularly regarding trade negotiations and conflicts in the Middle East, have compounded this uncertainty. Investors remain cautious, preferring to stay in safer assets until conditions stabilize.