In the early hours of Wednesday’s U.S. session, Bitcoin experienced significant volatility, oscillating between gains and losses. Starting with a decline below the $67,000 mark after losing momentum from its previous push above $68,500, Bitcoin rebounded swiftly to around $68,300, only to retreat back to $67,000 shortly after. Ether followed suit, dipping below the $2,000 level and losing approximately 1% over the past 24 hours.
Market dynamics appear influenced by traditional financial markets, which expressed a steadier tone in risk assets amid easing concerns over artificial intelligence disruptions in the tech sector. The iShares Expanded Tech-Software ETF, a benchmark for the software industry that had been struggling recently, rose by 1.9% in morning trading, indicating some relief for investors. Both the Nasdaq and the S&P 500 indices also registered increases, rising by 1.3% and 0.85%, respectively.
Conversely, geopolitical tensions have resurfaced, with increasing trader anxiety over potential escalation between the U.S. and Iran. The prediction market Polymarket reflects this sentiment, now estimating over a 50% probability of U.S. military strikes against Iran by March 15, a significant rise from around 30% just a day prior.
In response to market movements, gold prices soared by 2.5%, reclaiming the $5,000 threshold, while silver saw a notable 6% surge. U.S. crude oil prices climbed by more than 3%, surpassing $64 per barrel, highlighting escalating supply risks due to geopolitical uncertainties.
Amidst the turbulent crypto landscape, crypto-related equities showed resilience. Notable firms including Coinbase, Circle, and Galaxy experienced gains of 3% to 5%. Additionally, miners and companies connected to AI data centers, such as Riot Platforms and IREN, outperformed their peers, each recording increases of around 5.5%.
