Bitcoin held firm above US$70,000 on Thursday as global financial markets began to recover after a period of heightened volatility caused by escalating tensions in the Middle East. The original cryptocurrency was trading above US$72,500 at 10 am in Singapore, having briefly dipped 1.4 per cent following an 8 per cent rally the previous day. The surge reflects a return of confidence in digital assets as investors reassess risk amid geopolitical uncertainty.
Earlier in the week, many traditional assets experienced sharp sell-offs following US and Israeli strikes on Iran, creating fears of trade disruptions and rising inflation. South Korea’s Kospi index and Japan’s Nikkei 225 have since rebounded strongly, gaining 11 per cent and 4.2 per cent respectively, signaling broader market stabilization. Analysts suggest that Bitcoin’s resilience is tied to shifting liquidity expectations, as investors seek alternative stores of value amid macroeconomic uncertainty.
Gracie Lin, CEO of crypto exchange OKX SG, highlighted that Bitcoin often reacts disproportionately when liquidity expectations change, explaining the digital asset’s strength at these price levels. Richard Galvin, co-founder of hedge fund DACM, pointed to Bitcoin trading at a premium on Coinbase, reversing the discount seen earlier in the week, as a clear sign that bullish sentiment is returning in the United States.
In a notable shift, Bitcoin has outperformed gold over the past week, rising nearly 12 per cent while gold fell nearly 2 per cent. This contrasts with recent months, where bullion repeatedly hit record highs while Bitcoin struggled. Despite last October’s record price above US$126,000, Bitcoin experienced a sharp sell-off, losing more than 40 per cent of its value, leaving investors cautious. The recent geopolitical conflict appears to have reignited demand for the cryptocurrency as a potential haven, with nearly US$700 million flowing into US Bitcoin exchange-traded funds since the beginning of March.
Caroline Mauron, co-founder of Orbit Markets, noted that while trading may remain volatile due to ongoing geopolitical tensions, sentiment in the crypto market is increasingly bullish. Experts view this period as a potential inflection point for Bitcoin, as renewed investor interest and ETF inflows could set the stage for sustained growth if macro conditions remain supportive.
Looking ahead, Bitcoin’s performance in the coming weeks will likely be closely tied to developments in the Middle East and broader financial market trends. For investors and market watchers, the current stability above US$70,000 may signal both an opportunity and a test of Bitcoin’s resilience as a mainstream digital asset and hedge against uncertainty.
