Bitcoin Rebounds as Middle East Tensions Ease

Bitcoin rebounded to around $70,000 on Tuesday, rising roughly 2% as investor concerns over the Middle East tensions softened. US President Donald Trump made remarks that the conflict would resolve shortly. The move reflects a broader shift in market sentiment, with equities recovering sharply and oil prices retreating after Monday’s surge. The crypto rally came alongside a rebound in regional equities, with Japan’s Nikkei 225 up more than 3% and the MSCI Asia Pacific Index rising nearly 3%. Oil prices retreated sharply, with Brent dropping to $91.37 a barrel, supporting the rebound in risk assets, including cryptocurrencies. Ether, XRP, and Solana also recorded modest gains. Traders remain cautious, noting that geopolitical tensions could flare unexpectedly, potentially undermining the recent upside.

Bitcoin held above $72,000 on Thursday, trading near a four-week high, as markets recover from volatility linked to the ongoing Middle East war. The conflict, sparked by US and Israeli strikes on key Iranian sites and Tehran’s retaliatory missile attacks, has heightened global uncertainty and disrupted trade, particularly through the Strait of Hormuz. This initially sent investors fleeing to other assets, as traders sought a safe haven amid uncertainty over how long the war might last. However, Bitcoin has outperformed traditional safe havens like gold in recent days. Since Friday, gold has fallen nearly 2%, while Bitcoin has climbed roughly 12%, reversing the trend of recent months. So far in March, nearly $700 million has flowed into US Bitcoin ETFs, reflecting renewed appetite for digital assets despite ongoing geopolitical and macroeconomic risks.

Bitcoin dipped below $65,000 on Monday, hitting a more than two-week low as renewed tariff concerns rattled global markets. On Saturday, US President Donald Trump said he would raise the 10% global levy announced a day earlier to 15%, following the US Supreme Court's rejection of his sweeping reciprocal tariffs, adding fresh uncertainty to the economic outlook. The move sparked worries that trade agreements between the US and its partners could unravel, though senior US officials reiterated that existing deals would remain in place. Investors also weighed growing fears that the Trump administration might launch military action against Iran amid stalled nuclear negotiations, with diplomats set to reconvene in Geneva on Thursday. Bitcoin and the broader cryptocurrency market have lagged other asset classes, failing to serve as a reliable hedge against economic uncertainty, unlike gold.