Bitcoin held above $72,000 on Thursday, trading near a four-week high as markets recovered from volatility tied to the ongoing war in the Middle East. The conflict—triggered by US and Israeli strikes on key Iranian sites and followed by Tehran’s retaliatory missile attacks—has increased global uncertainty and disrupted trade, particularly through the Strait of Hormuz. This initially drove investors into alternative assets, as market participants sought safe havens amid uncertainty over the duration and escalation of the war.
In recent days, however, Bitcoin has outperformed traditional safe havens such as gold. Since Friday, gold has fallen nearly 2%, while Bitcoin has gained roughly 12%, reversing the pattern seen in previous months. In March alone, nearly $700 million has flowed into US Bitcoin ETFs, underscoring renewed demand for digital assets despite persistent geopolitical and macroeconomic risks.
