Nexo: Digital Assets Secure Long-Term Growth Momentum Despite Inflation and Geopolitical Fears

▲ Virtual assets/ChatGPT-generated image

The virtual asset market is maintaining a solid trajectory despite inflation concerns and geopolitical crises, securing long-term upward momentum.

In a report released on February 21 (local time), virtual asset lending platform Nexo analyzed that major virtual assets, including Bitcoin (BTC), are demonstrating strong resilience amid macroeconomic uncertainty. Quoting Nexo’s analysis, Investing.com reported that capital inflows into the virtual asset market continue steadily even as investors monitor inflation outlooks and tensions in the Middle East. Nexo particularly emphasized that Bitcoin is solidifying its position as digital gold and drawing attention as a hedge against risk.

Although the direction of the U.S. Federal Reserve’s interest rate policy remains uncertain, the virtual asset market is assessed to have already priced in the worst-case scenario. Nexo noted that institutional inflows through spot Bitcoin ETFs are reinforcing price support levels, marking a different pattern from past periods of volatility. The expansion in stablecoin supply and stable open interest trends were also cited as indicators that the market’s fundamentals have strengthened.

Whenever geopolitical risks escalate, virtual assets have experienced temporary corrections, but the pace of recovery has been accelerating. According to Nexo’s analysis, as inflationary pressure persists due to global supply chain disruptions and rising commodity prices, demand to hedge against the depreciation of fiat currencies is increasingly flowing into the virtual asset market. Technological advancements within the virtual asset ecosystem and its accelerating integration into the institutional financial system are key factors enhancing resilience to external shocks.

Amid macroeconomic turbulence, the virtual asset market is establishing its own growth trajectory and presenting a new financial paradigm. Nexo analyzed that future market trends will depend on the stabilization of inflation figures and the easing of international tensions. Investors are responding by focusing less on short-term volatility and more on structural market changes and long-term value appreciation potential.

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