Bitcoin advanced to nearly a six-week high as investors returned to riskier assets on optimism that market turmoil tied to the Middle East conflict may be starting to ease.
The largest cryptocurrency climbed about 4% to $74,512, the highest since Feb. 4 before paring some of the gains. Bitcoin is still down around 40% from a record high reached in October.
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Other smaller, more volatile, digital assets saw even greater spikes. Ether, the second-largest cryptocurrency, rose as much as 8% to $2,302, roughly twice Bitcoin’s advance. Solana and XRP both rose as much as 7%.
Bitcoin has weathered the war with Iran, which broke out at the end of February, better than many traditional assets. Gold is down about 5% this month, while Bitcoin is up by more than 12%. US stock rose and oil prices reversed an advance on Monday amid hopes that more tankers will be able to traverse the Strait of Hormuz, with talks ongoing to ensure the waterway’s security.
“Crypto has been in a bullish mood over the past week despite geopolitical uncertainty,” said Caroline Mauron, co-founder of Orbit Markets. “A break through $75,000 now appears very possible, as both retail and strategic buyers feel the worst of the crypto drawdown is behind us.”
Market makers appear structurally short calls at the $75,000 level, according blockchain data firm Glassnode. “As spot approaches, hedging flows could intensify, potentially amplifying upside price moves.”
“It is quite possible that near the $75,000 mark, the bears will take control, leaving Bitcoin within a corrective rebound pattern following a decline,” said Alex Kuptsikevich, chief market analyst at FxPro. “From a cross-market analysis perspective, the bears have more arguments on their side, but Bitcoin has often moved ahead of the market, reflecting its underlying shifts in sentiment.”
Inflows to exchange-traded funds suggest a return of institutional confidence. Net flows for the 12 US-listed spot Bitcoin ETFs topped $763 million last week, a third consecutive week of inflows. So far for March, total net inflows are $1.3 billion.
“BlackRock’s IBIT accounted for roughly 78% of those flows, a concentration that reflects conviction buying rather than speculative rotation,” said Rachael Lucas, an analyst at BTC Markets.