Oil up. Gold up. And to the surprise of many – Bitcoin too. The escalation of the conflict in the Middle East has turned the market tables, but not in the way most analysts predicted.
When missiles began flying over the Persian Gulf in recent days and the United States confirmed its attacks on Iran’s military and nuclear infrastructure, global markets reacted with a classic panic attack. Brent jumped between 8 and 10%, gold exceeded USD 5,160 per troy ounce and this was where the scenario was supposed to end for cryptocurrencies.
But Bitcoin surprised by breaking the $70,000 barrier. Once again.
Digital gold on a candlestick
Is this a coincidence? Not necessarily.
When panic spread to traditional markets after the weekend, investors looking for an exit from risky positions had only one door open: the cryptocurrency market. This sparked an initial sell-off. When the emotions subsided, the capital returned. This mechanism (chaotic, but repeatable) fits more and more clearly into the pattern of Bitcoin’s behavior during geopolitical shocks.
Will there be further increases and Bitcoin will break the bearish mood of recent weeks
The beginning of the year did not spoil the king of cryptocurrencies, as the last weeks of declines tested levels below USD 65,000. The war in Iran seemed to trigger even greater declines, but the bearish mood quickly changed. Although Bitcoin historically behaves more like a high-risk asset than a defensive haven, the real conflict in the Middle East, which affects an increasing number of countries, has shown the real sentiment of investors and the market towards BTC.
Bitcoin up! Institutions vote with their wallets
However, there are signals that give food for thought to optimists. Bitcoin spot ETFs saw inflows of $787.31 million in the past week, following five weeks of outflows. Institutions buy. Retail investors are watching. And the level of USD 80,000 is no longer an abstraction.
The answer to the question in the title? Too early to announce a turnaround. But many signals indicate that those who have been waiting to enter have just had an excuse to start wondering whether they have been waiting too long. The BTC sale is ending now 😉
