The cryptocurrency market saw dramatic moves as Bitcoin jumped 5% within hours of the US military striking Iranian nuclear facilities, with traders flocking to digital assets amid geopolitical uncertainty. The world’s largest cryptocurrency outperformed traditional safe havens like gold, reinforcing its growing role as a hedge against global instability.
Bitcoin’s price surged from $63,000 to over $66,000 within 90 minutes of the news breaking, while Ethereum and other major altcoins followed with smaller gains. The rally came as oil prices spiked and stock markets wobbled, highlighting crypto’s decoupling from traditional risk assets during crises. “This is exactly the kind of event that proves Bitcoin’s value proposition,” said Marcus Thielen, head of research at 10x Markets. “When trust in governments erodes, decentralized assets shine.”
The crypto market’s reaction mirrored patterns seen during past geopolitical shocks, including Russia’s invasion of Ukraine. Bitcoin’s volatility index spiked 35% as trading volumes doubled normal levels, with particularly heavy buying in Asian markets. Notably, Tether’s USDT stablecoin saw $2 billion in net inflows, suggesting traders were parking funds in crypto while assessing the situation.
Analysts noted three key drivers behind Bitcoin’s surge:
- Inflation hedging – Fears of prolonged oil price spikes boosting inflation
- Sanctions avoidance – Anticipation of increased crypto use for cross-border transactions
- Technical breakout – Bitcoin had been consolidating near key support before the news
While gold rose 1.2% and Treasury yields fell, Bitcoin’s stronger performance surprised traditional finance observers. “The magnitude of BTC’s move shows digital assets are maturing as a risk-off asset class,” noted Fidelity Digital Assets in a flash note.
However, some warned the rally could be fragile. “If this escalates into full-blown war, all risk assets, including crypto, could sell off violently,” cautioned CryptoQuant CEO Ki Young Ju. By press time, Bitcoin had pared gains to trade at $65,400 as the US signalled no immediate further strikes.
The events underscore crypto markets’ growing sensitivity to geopolitical shocks – and Bitcoin’s evolving role in global finance. As tensions simmer, traders will watch whether BTC can hold gains or become collateral damage in a broader market panic.
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