Bitcoin jumps above $71,000, building on its resilience to Middle East conflict

AI Summary3 min read

TL;DR

Bitcoin surged above $71,000, gaining over 6% despite Middle East tensions, showing resilience as an alternative to traditional safe havens like gold. The rally led broad cryptocurrency advances while gold retreated and Asian equities slid on energy concerns.

Key Takeaways

•Bitcoin climbed above $71,000 with over 6% gains, demonstrating resilience amid Middle East conflict and oil supply disruptions.
•Analysts note bitcoin is developing defensive traits as a flexible, high-risk alternative to traditional safe havens like gold, which retreated from recent highs.
•The cryptocurrency maintained support around $65,000 since the conflict began, while other major cryptocurrencies like ether and solana followed bitcoin's upward trend.
•Asian equity markets declined due to rising energy costs, contrasting with bitcoin's performance during the geopolitical turmoil.
•Bitcoin's rally occurred despite intensified crisis conditions, including Iran blocking oil supplies through the Strait of Hormuz.

What to know:

Bitcoin climbed above $71,000, gaining more than 6% in 24 hours and leading broad advances in major cryptocurrencies.
The rally comes despite escalating Middle East tensions and disruptions to oil supplies through the Strait of Hormuz, with bitcoin holding support around $65,000 since the conflict began.
As gold retreats from recent highs and Asian equities slide on rising energy costs, some analysts say bitcoin is showing defensive traits and emerging as a flexible, though still high-risk, alternative to traditional safe havens.

Bitcoin climbed above $71,000, gaining more than 6% in 24 hours and leading broad advances in major cryptocurrencies.
The rally comes despite escalating Middle East tensions and disruptions to oil supplies through the Strait of Hormuz, with bitcoin holding support around $65,000 since the conflict began.
As gold retreats from recent highs and Asian equities slide on rising energy costs, some analysts say bitcoin is showing defensive traits and emerging as a flexible, though still high-risk, alternative to traditional safe havens.

Bitcoin BTC$72,364.59 surged Wednesday, underscoring its growing resilience to turmoil in the Middle East, while gold, a traditional safe haven, lagged.

The leading cryptocurrency by market value rose to $71,023 during the European hours, up over 6% on a 24-hour basis, according to CoinDesk data. Other majors such as ether (ETH), XRP (XRP) and solana (SOL) followed bitcoin's lead, rising between 4% and 6%.

The CoinDesk 20 Index, a broader market gauge, rose over 5% to 2,025 points.

"Bitcoin may now exhibit some defensive characteristics during crisis periods, but gold’s retreat highlights that even classic safe-havens are not immune to market dynamics, positioning Bitcoin as a more flexible yet still high-beta alternative," Tagus Capital said in its daily newsletter.

BTC's climb to the highest since Feb. 8 follows even as the crisis has intensified, with Iran blocking oil supplies through the Strait of Hormuz and raising the specter of energy‑price inflation around the world. Since the conflict with Israel and the U.S. erupted on Saturday, bitcoin has proved surprisingly resilient, with the downside capped around $65,000.

Meanwhile, gold, a traditional safe haven, peaked above $5,400 per ounce on Monday and has since declined to $5,160. Asian equity indexes, led by South Korea's Kospi index, have bled heavily as oil imports cost rise.

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Crypto-related stocks rallied at the open of Wednesday's U.S. session as bitcoin briefly climbed above $72,000 for the first time in nearly a month.
COIN, MSTR, GLXY, HOOD surged 8%-12%, with miners BITF, HUT, IREN also bouncing.
Bitcoin's move into the closely watched $70,000 to $72,000 range, which has capped recent rallies, is a key test of whether the latest advance can be sustained.

Disclosure & Polices: CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of Bullish (NYSE:BLSH), an institutionally focused global digital asset platform that provides market infrastructure and information services. Bullish owns and invests in digital asset businesses and digital assets and CoinDesk employees, including journalists, may receive Bullish equity-based compensation.