Bitcoin rises amid concerns over the escalating conflict in Iran and declines in the stock market.

BTC remains around $70,000 and shows better performance than major assets amid Middle East unrest, even as derivatives metrics and fear indicators reflect significant market pessimism.

Key points:

• Bitcoin has increased by approximately 7% since the escalation of the Middle East conflict on February 28, surpassing the S&P 500, Nasdaq 100, gold, and silver, while maintaining a position near $70,000 even as Brent crude oil briefly approached $100 per barrel.
• Despite the stable price movements, market sentiment remains low, with bitcoin funding rates being negative since early March and the crypto fear and greed index indicating extreme fear, illustrating a disparity between market positioning and price stability.

Bitcoin BTC$70,388.41 remains anchored around $70,000, exhibiting remarkable price stability even as market sentiment continues to be highly pessimistic in light of the Iran conflict and oil price fluctuations.

The crypto fear and greed index, a commonly referenced sentiment gauge, has consistently indicated extreme fear in recent weeks, suggesting that traders are remaining cautious despite the absence of a significant price drop.

Market positioning also reveals a bleak outlook. The annualized funding rates for bitcoin perpetual futures have been negative since early March, indicating a rising preference for bearish short positions. This period marks the longest stretch of negative funding since April 2025, when bitcoin eventually reached a market bottom around $76,000.

This aligns with fears on Wall Street, where the VIX index rose to 25 this week, its highest level in over a year.

Nevertheless, bitcoin’s price movement has shown notable resilience. Following the escalation of the Middle East conflict on February 28, the leading cryptocurrency has experienced an approximate 7% increase. This performance is favorable when compared to other major assets during the same timeframe. The Nasdaq 100 has remained relatively stable while the S&P 500 has decreased by about 1%, gold has dropped around 3%, and silver has declined nearly 9%.

This comes alongside Brent crude briefly surpassing $100 per barrel earlier today amid ongoing regional tensions.

The disparity was also evident during Wednesday’s U.S. trading session. BlackRock’s iShares Bitcoin Trust (IBIT) traded 1% higher. While major equity indices were in decline, including the S&P 500 (SPX), the Nasdaq 100 (QQQ), the Russell 2000 (IWM), and the Dow Jones Industrial Average (DJI), underscoring bitcoin’s relative strength during U.S. market hours.

The outperformance is likely attributed to large traders and institutions acquiring coins through privately negotiated deals, which has kept demand consistent.

At present, bitcoin seems to be faring better than the prevailing market sentiment surrounding it, remaining stable despite ongoing fear throughout the broader financial landscape.