Global markets are showing signs of recovery after recent geopolitical tensions, with Bitcoin stabilizing near the US$70,000 mark amid shifting investor sentiment.
According to Bloomberg, markets have recovered from the turmoil caused by the war with Iran, which has threatened to disrupt commerce and increase inflation, and Bitcoin has stabilized at US$70,000.
Bitcoin Stabilizes as Global Markets Recover
At 10 a.m. on Thursday in Singapore, the original cryptocurrency was trading at US$72,500, falling as much as 1.4% after rising 8% during US hours on Wednesday.
In contrast to other assets, which suffered large selloffs as soon as markets reopened after US and Israeli strikes on Iran over the weekend, Bitcoin appeared solid earlier in the week. But by Thursday, markets were starting to rise again. Japan’s Nikkei 225 increased 4.2%, while Korea’s Kospi index increased 11%.
Market Reaction to Middle East Tensions
â‚¿ Bitcoin Market Snapshot
- Current Price: US$72,500
- Recent Surge: +8% during US trading hours
- Weekly Gain: Nearly 12% since Friday
- Gold Performance: Down almost 2%
- ETF Inflows: Around US$700 million in March
- Market Context: Iran conflict & macro uncertainty
“Markets are pricing in expectations of more accommodating financial circumstances due to economic instability and the intensifying violence in the Middle East,” stated Gracie Lin, CEO of the cryptocurrency exchange OKX SG.
“Bitcoin tends to respond disproportionately when liquidity expectations move — which helps explain the strength we are seeing at these levels,” Gracie continued.
Liquidity Expectations Drive Bitcoin Strength
Bitcoin’s premium on Coinbase, which had flipped from a discount on Sunday, was cited by Richard Galvin, co-founder of hedge firm DACM, as a sign of resurgent positive sentiment in the US.
Even gold, which the digital commodity is sometimes compared to but rarely resembles, has underperformed in recent days. Gold has dropped by almost 2% since Friday, the day before the strikes, while Bitcoin has increased by almost 12% during that time.
Bitcoin vs Gold Performance Gap Widens
📊 Crypto vs Gold Comparison
- Bitcoin Movement: +12% since Friday
- Gold Movement: -2% since Friday
- Investor Trend: Rotation toward digital assets
- Geopolitical Trigger: US & Israeli strikes on Iran
- Macro Influence: Liquidity and inflation expectations
- Sentiment: Bullish momentum returning
Prior to this week, the trend in recent months had been essentially the opposite, with Bitcoin declining while bullion frequently reached record highs. Since a dramatic sell-off in October, shortly after Bitcoin reached a record high above US$126,000, cryptocurrencies have failed to establish a sustainable rally. Since then, the token’s value has decreased by more than 40%.
Before the recent violence in the Middle East, investors had been escaping to other assets, and traders were hurrying to locate a safe haven amid uncertainties about the duration of the conflict. According to data collated by Bloomberg, investors have invested around US$700 million in US Bitcoin exchange-traded funds thus far in March.
ETF Inflows Signal Renewed Investor Interest
According to Caroline Mauron, co-founder of Orbit Markets, “sentiment is turning bullish again in the crypto industry.” “Given the geopolitical concerns and macro uncertainty, trading could continue be bumpy, but the market appears to have turned a corner for now,” Caroline said.
Disclaimer: This article is for informational purposes only. Cryptocurrency investments are subject to market risks and volatility. Investors should conduct their own research before making financial decisions.
