Bitcoin Defies Middle East Tensions, Surging Above $72,000
Bitcoin’s price jumped on Friday, reaching levels not seen since early February, despite ongoing geopolitical strife in the Middle East. The broader crypto market is largely experiencing gains, with Bitcoin briefly flirting with $74,000 before settling above $72,000.
Bitcoin’s Unexpected Rally
Over the past day, Bitcoin has risen by 2%, and over the past month, it has surged by more than 8%, according to data from CoinGecko.1 This unexpected rally comes after an initial dip at the start of the US-Iran conflict on February 28th, and contrary to expert warnings of a potential selloff alongside other risk assets.
Market Sentiment and Expert Analysis
Carlos Guzman of GSR Research suggests investors may be viewing Bitcoin and the broader crypto market as oversold compared to other assets, leading to increased exposure.2 Despite the price increase, market sentiment remains weak, with negative Bitcoin funding rates since early March and the crypto fear and greed index indicating extreme fear.
This disconnect between market positioning and price resilience is notable. Annualized funding rates for Bitcoin perpetual futures have been negative since early March, reflecting a bearish bias. The crypto fear and greed index has consistently signaled extreme fear in recent weeks.
Bitcoin as a Risk Asset or Safe Haven?
Historically described as a safe-haven asset, Bitcoin has recently shown a stronger correlation with risk assets like tech stocks. Following a significant selloff in October, where the cryptocurrency shed most of its year-to-date gains, it entered a bear market. However, Guzman believes the bottom may be in, regardless of the ongoing conflict.2
Some analysts, like Ignas on X, suggest the asset is being bought as part of a “redemption trade,” with geopolitical headwinds potentially benefiting the asset. Diana Pires, Chief Business Officer at sFOX, notes a rare decoupling from traditional risk assets.2 Dilin Wu, a research analyst at Pepperstone, indicates an “uptrend could be restarting” as institutions maintain interest, but cautions that a spike in oil prices could pressure Bitcoin although boosting gold.2
Performance of Other Cryptocurrencies
Bitcoin wasn’t the only cryptocurrency to experience a price increase on Friday. Ethereum rose by more than 5%, trading at $2,137 at midday in New York.2 This increase followed BlackRock’s debut of a new Ethereum exchange-traded fund, offering investors staking exposure. Solana and XRP also saw gains, rising by 3% and 2%, respectively.2
Ongoing Middle East Conflict and Market Impact
The ongoing conflict in the Middle East, triggered by US–Israel strikes on Iran on February 28, has shaken global markets. Oil prices surged, stock markets became volatile, and investors initially rushed to assets traditionally seen as “safe havens” such as gold, silver and Bitcoin.3 However, the performance of these assets has varied significantly.
As of March 12, 2026, Bitcoin has risen about 7% since the escalation of the Middle East conflict, outperforming the S&P 500, Nasdaq 100, gold, and silver.3
2 DL News