Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin surpassed $71,000, increasing over 6 percent within 24 hours and spearheading significant gains in leading cryptocurrencies.
Bitcoin’s price rise. (CoinDesk)
What to know:
- Bitcoin surpassed $71,000, increasing over 6 percent within 24 hours and leading significant gains in major cryptocurrencies.
- The surge occurs despite rising tensions in the Middle East and interruptions to oil supplies via the Strait of Hormuz, with bitcoin maintaining support near $65,000 since the onset of the conflict.
- As gold retreats from recent peaks and Asian stock markets decline due to escalating energy costs, some analysts suggest bitcoin is displaying defensive traits and emerging as a versatile, albeit still high-risk, alternative to conventional safe havens.
Bitcoin rose on Wednesday, highlighting its increasing resilience amid turmoil in the Middle East, while gold, a conventional safe haven, underperformed.
Related Posts
The leading cryptocurrency by market capitalization reached $71,023 during European trading hours, marking an increase of over 6% on a 24-hour basis, according to CoinDesk data. Other major cryptocurrencies such as ether (ETH), XRP (XRP), and solana (SOL) followed bitcoin’s trajectory, appreciating by 4% to 6%, respectively.
The CoinDesk 20 Index, a wider market indicator, increased by more than 5% to 2,025 points.
"Bitcoin may now show some defensive qualities during periods of crisis, but gold’s decline illustrates that even traditional safe-havens are not exempt from market influences, positioning Bitcoin as a more adaptive yet still high-beta option," Tagus Capital noted in its daily newsletter.
BTC’s recent ascent to multi-week highs occurs even as the crisis escalates, with Iran halting oil supplies through the Strait of Hormuz, raising concerns over global energy-price inflation. Since the conflict involving Israel, the U.S., and Iran erupted on Saturday, bitcoin has demonstrated notable resilience, with the downside supported around $65,000.
In contrast, gold, a traditional safe haven, peaked above $5,400 per ounce on Monday but has since fallen to $5,160. Asian equity markets, led by South Korea’s Kospi index, have suffered significant losses as the cost of oil imports rises.
