Bitcoin As the Middle East conflict enters its third week, the bullish momentum in cryptocurrencies continued on Monday, with them surging over the weekend.
The leading cryptocurrency hit $74,157 in early Asian trading on Monday morning, according to data from price aggregator CoinGecko. At the time of this writing, Bitcoin was trading around $73,978, up 3.1% on the day and 9.1% for the week.
Bitcoin’s rise came despite escalating geopolitical tensions due to the war between the US and Iran, which caused turmoil across markets.
US President Donald Trump said in an interview that it would be “very bad for the future of NATO” if allies did not help secure the Strait of Hormuz. financial timesIt followed Sunday’s post on TruthSocial, calling on countries receiving oil through the Strait of Hormuz to “be mindful of that route” and adding that the United States would be “very supportive”.
Due to the uncertainty, oil prices have been rising slowly but steadily, trading at $99.25 per barrel, up nearly 28% from the March 9 low, but still well below last week’s high of $119.48.
Gold, a safe-haven asset that typically soars amid geopolitical uncertainty, has fallen about 7% since the conflict began on February 28. Bitcoin, which has acted as a risk-on asset for most of the past five months, rose 11%, widening the gap between the two.
Tim Sun, a senior researcher at cryptocurrency operator Hashkey Group, said Bitcoin’s rise was not due to the war itself, but rather its macroeconomic impact. decryption. “The combination of high oil prices, slowing economic growth, and widening budget deficits means future U.S. fiscal pressures will only increase and ultimately refocus liquidity issues.”
Son also pointed out that the selling pressure from “short-term emotional speculators” has disappeared, leaving the market in the “hands of medium- and long-term holders.”
“Bitcoin destruction days, which measures how much long-dormant Bitcoin is being moved, has fallen to its lowest level in nearly three years, meaning those with the deepest beliefs were simply sitting on the coin,” said Ilya Otichenko, principal analyst at CEX.IO. decryption.
Otichenko echoed Sun’s outlook, explaining that geopolitical noise may have strengthened long-term holders’ patience in an uncertain environment.
Depletion of short-term sellers and confidence among long-term holders, combined with stabilization of ETF inflows for the third straight week, helped shape Bitcoin’s recovery rally, experts say decryption.
Option data supports upside potential.
A Monday Telegram post by market intelligence firm Glassnode highlighted a large pocket of “negative gamma” near the $75,000 strike. That “tripwire level” has a large concentration of call options held by institutional market makers, who incur losses if prices rise above that point.
This means that market makers who sold call options at that level may be forced to buy Bitcoin as the price approaches, potentially amplifying the upside move.
Prediction Market Myriad Users (Owned) decryption Parent company Dastan remains optimistic, predicting a 55% chance that the crypto market will recover this spring.
Sun tempered his outlook, saying that even though Bitcoin is held independently of traditional financial intermediaries and serves as a globally liquid sovereign asset, “the structure of this rally is not entirely sound” in an extreme scenario.
As the Middle East conflict escalates, major cryptocurrencies are likely to act in this way due to the need for alternative cross-border assets that can function outside the traditional financial system.
However, experts stressed that investors should pay close attention to the US Federal Reserve’s stance on the March FOMC meeting and the current state of the macroeconomic outlook.
