Bitcoin’s plunge — then rebound — following Iran’s attack on Israel was predictable.

Asset management giant BlackRock advised cryptocurrency investors in a nine-page report that geopolitical events tend to have such an effect on markets.

Bitcoin’s (CRYPTO: BTC) initial plunge — and subsequent rebound — following news of Iran launching an attack on Israel was to be expected, according to a nine-page report from asset management giant BlackRock.

While Bitcoin, the top cryptocurrency with a $1.2 trillion market value, has yet to fully recoup its losses, the firm suggests it’s only a matter of time now. Bitcoin is trading at $61,190, down 2.3% in the past day, according to CoinGecko.

See More: Live Bitcoin Price

Laser-Eyed Bitcoin Screed

In September, a laser-eyed Larry Fink issued a tried-and-tested pitch once again, stating that Bitcoin, much like gold, serves as a strong hedge for events like those occurring in the Middle East today.

A chart from that report showed how Bitcoin rallied double digits 60 days after major geopolitical events, including the US airstrike on one of Iran’s military commanders in 2020 and Russia’s invasion of Ukraine in 2022.

For example, 60 days after the airstrike, Bitcoin rose 20%, while gold only rose 6%. The S&P 500 fell 7% during the same period.

Stick it on your wall and come back in 60 days https://t.co/uuIW3pW6Bc pic.twitter.com/ipxifRvtyX

This is also why BlackRock, the $10 trillion investment firm that manages the industry’s largest spot Bitcoin exchange-traded fund, is recommending a “modest allocation” to diversify investor portfolios.

BlackRock’s analysis would have crypto investors waiting till November 30. The firm isn’t alone in its analysis, either.

“These medium-term correlations with risk-on assets may reflect current investor sentiment toward cryptocurrencies,” Jacob Joseph, senior research analyst at CCData, told DL News.

“As Bitcoin adoption grows and it is increasingly viewed beyond its speculative nature, it has the potential to evolve into a global monetary alternative or a distinct portfolio diversifier, as noted in BlackRock’s latest report.”

See More: Best Crypto Charting Software

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