When geopolitical risk flares up, markets tend to reach for familiar shelters. Gold usually catches a bid. U.S. Treasuries often rally as investors seek safety and liquidity. Bitcoin (CRYPTO: BTC), born out of the 2008 financial crisis and long marketed as an alternative to government money, is supposed to fit into that same category.

But the latest bout of conflict in the Middle East has reopened an uncomfortable question for crypto investors. When fear hits the market, does Bitcoin really behave like a hedge, or does it still trade like a high-octane risk asset?

To get an answer, it helps to look at how Bitcoin moved compared with gold and U.S. Treasuries during the most recent shock.

The… Read more on Benzinga