The price of Bitcoin surged to a two-week high approaching $70,000 on Monday, buoyed by a rising trend among riskier assets amid ongoing military operations by the U.S. and Israel against Iran, which entered its third day. The leading cryptocurrency, according to data from CoinGecko, traded at approximately $68,938, reflecting a 4.4% rise over the previous day. Throughout the late morning, platforms like Coinbase and CoinMarketCap noted a brief spike above the $70,000 threshold before prices adjusted.
This rally followed a decline to $63,100 early Saturday, triggered by reports of bombings in Iran and speculation surrounding the potential death of Iran’s Supreme Leader, Ayatollah Ali Khamenei. In tandem with Bitcoin’s climb, Ethereum also experienced an uptick, gaining 3.2% to reach $2,032, while Solana and XRP rose by 3.5% to $87 and 1.3% to $1.39, respectively.
Although the Nasdaq Composite faced losses at the start of Monday’s trading, it swiftly recovered to show a 0.39% gain by midday. The S&P 500 remained largely unchanged, while the Dow Jones lost a few points. This rebound came in sharp contrast to initial anxieties when news of the international conflict first broke, highlighted by President Donald Trump’s announcement from the White House of ongoing military actions in Iran. “The United States military continues to carry out large-scale combat operations in Iran,” Trump stated, emphasizing the destruction of Iran’s missile capabilities.
Market analysts, including Stephen Coltman, head of macro at 21Shares, indicated that investors are evaluating whether Iran’s leadership might quickly negotiate with the Trump administration or if regional instability would persist. Coltman noted a rise in inflation expectations in the U.S., which could enhance the attractiveness of scarce assets like Bitcoin against traditional currencies. He explained, “If rates are 3% but expected inflation is 5%, then you will look for alternatives to cash because otherwise your money will be losing value over time in real purchasing power terms.”
The correlation between Bitcoin’s gains and a downturn in precious metals was particularly noteworthy at the time of the U.S. market opening. While gold enjoyed a 1.3% increase to $5,300 per ounce, silver experienced a dramatic 7% drop to $88 per ounce. Analysts from IG, Chris Beauchamp and Axel Rudolph, suggested that despite the volatile international context, equities are viewed as a refuge for investors, stating, “Stocks seem able to live with the war in the Middle East so long as it doesn’t escalate.”
Overall, Bitcoin’s performance stood in stark contrast to the recent challenges faced by traditional assets such as silver and gold, further solidifying its role as a potential safe-haven during geopolitical turmoil.
