The cryptocurrency flagship has weathered the shock of the U.S.-Iran war better than many other assets.
On Wednesday, Bitcoin surged alongside stocks, reaching an 11-week high after President Donald Trump announced the extension of the ceasefire with Iran, boosting market confidence.
The original cryptocurrency rose by 3.6%, briefly exceeding the $78,400 mark, reaching its highest level since February 3, and other crypto assets also increased in value.
Bitcoin has fared better in the Iran conflict than many other assets, including the traditional safe haven of gold: since February 27, Bitcoin has risen by more than 15%, while gold has fallen by approximately 10%.
On Wednesday, Bitcoin surged alongside stocks, reaching an 11-week high after U.S. President Donald Trump stated he was ready to extend the ceasefire with Iran.
The original cryptocurrency rose by 3.6%, briefly exceeding the $78,400 mark, reaching its highest level since February 3. At 6:40 AM London time, it was trading around $78,000. Other cryptocurrencies also rose, with Ether increasing by 3.8%.
"The short-term direction of BTC still largely depends on the developments in the macroeconomic and geopolitical situation," said Paul Howard, senior director at market maker Wincent. "In the absence of a clear external catalyst, position-oriented traders in a low-volatility environment are likely to view the $72,000 area as a key support zone, while any rise will be capped by potential resistance and a profit-taking ceiling around $79,000."
Contracts for the S&P 500 index also rose by more than 0.5%, while the price of Brent crude oil fell by 1.8%, dropping below $97 per barrel.
Bitcoin has fared better in the Iran conflict than many other assets, including the traditional safe haven of gold. The price of gold has fallen by approximately 10% since February 27, while Bitcoin has risen by more than 15% during the same period.
"In recent weeks, cryptocurrencies have shown a bullish sentiment, often ignoring bad news and rising on positive developments," said Caroline Moron, co-founder of Orbit Markets. "The $75,000 level should hold as a reliable support, and a confident breakout above $80,000 will open significant potential for further growth."
Since the start of the war at the end of February, Bitcoin has mostly traded in the range of $65,000 to $75,000. This sustained momentum has provided a respite after several months of decline, during which the token lost approximately 40% of its value from a peak of $126,000 in October, when a sharp sell-off led to a collapse in the cryptocurrency markets.
In recent weeks, there has been a renewed influx of funds into U.S. exchange-traded funds trading on the spot Bitcoin market. This week, over $250 million in net funds flowed into 13 funds, after investors injected $996.4 million into them last week.
Source: Bloomberg.
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