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Since the onset of the conflict surrounding Iran, cryptocurrencies have emerged as leaders in growth compared to other asset classes. Bitcoin and other digital currencies have become a “haven of tranquility” amidst the volatility of stocks, gold, and oil, according to Bloomberg.
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In recent weeks, oil prices have surged by over 40%, while gold has decreased by approximately 5%, and the MSCI World index has fallen by 4%. Against this backdrop, Bitcoin surpassed the $75,000 mark on March 17. Since the end of February, its increase has been around 14%.
Bloomberg reports that in March, the inflow of funds into Bitcoin spot exchange-traded funds (ETFs) in the U.S. reached about $1.5 billion. Analyst Rachael Lucas from BTC Markets attributed this to corporate investors, who are actively purchasing Bitcoin reserves during price dips.
Markus Thielen, head of research at 10x Research, noted that part of the growth is linked to the closure of options positions that were betting on Bitcoin dropping below $55,000–60,000.
“When investors close ‘put’ options on Bitcoin, the demand for price drop insurance decreases. In response, market makers begin to buy BTC to hedge their positions, creating additional demand and supporting the upward trend,” he explained.
According to Deribit data, approximately $1.5 billion in ‘put’ options are concentrated at the $60,000 level, while the volume of ‘call’ options at the $75,000 level is around $1.3 billion.
Hayden Hughes, managing partner at Tokenize Capital, believes that the current growth is impulsive in nature. He estimates that in the short term, Bitcoin could reach $80,000, but a reversal is likely, and the rally may weaken as soon as next month.
Thielen also pointed out that the growth has not been accompanied by a significant increase in ‘call’ option purchases, indicating a predominance of hedge position closures rather than the establishment of a sustainable bullish trend.
As of the morning of March 17, Bitcoin is trading above $74,000, although its price had briefly reached $76,000 earlier.
Analysts from trading firm QCP Capital note that the escalation of the conflict surrounding Iran has heightened interest in cryptocurrencies as a means for cross-border transactions and liquidity preservation. This context has intensified discussions regarding Bitcoin’s role as a safe-haven asset.
