Bitcoin is poised to conclude its strongest week since September 2025, rising approximately 8.5% and trading above $71,000. This surge is particularly notable when compared to other major financial assets. Over the past week, Bitcoin has begun to diverge from the broader market, indicated by the performance of BlackRock’s iShares Bitcoin Trust (IBIT), which has increased about 3.5% and approached a one-month high on Friday.
This trend is significant as various traditional assets—including the iShares Expanded Tech Software ETF (IGV), gold, and U.S. equities—have experienced a downward trajectory throughout the week. The contrasting movement suggests that Bitcoin is starting to weaken its strong correlation with software and tech assets, at least in the short term.
Since the onset of the recent conflict in the Middle East over two weeks ago, Bitcoin has risen roughly 13%, outperforming both traditional risk assets and safe havens. In comparison, the IGV has gained approximately 3%, while gold has witnessed a decline of about 6%, and U.S. equities have also posted negative results.
On a monthly scale, Bitcoin has climbed around 7% so far in March, marking its first positive month since September. This rebound follows a challenging period during which the asset experienced five consecutive months of losses, plunging as much as 50% from its previous October all-time high.
Interestingly, the resurgence appears to be driven by U.S. institutional demand, as spot Bitcoin exchange-traded funds (ETFs) in the country have reported around $1.3 billion in net inflows this month. This development positions Bitcoin ETFs on track for their first month of net inflows since October.
However, despite these positive signs, caution pervades the market sentiment. The crypto fear and greed index remains in the “extreme fear” range, reflecting a prevailing sense of trepidation among investors. Additionally, the perpetual futures funding rates continue to be negative, a situation where short sellers pay long positions. This indicates a dominant bearish sentiment, with traders willing to pay to maintain short exposure, highlighting ongoing uncertainty.
While these developments do not imply that Bitcoin is completely free from turbulence, they suggest that investors are beginning to view it not solely as a risk asset. Recent analysis indicates that Bitcoin may be evolving into a pivotal indicator of the broader market’s response to macroeconomic events. The Middle Eastern conflict serves as a prime example of this trend, as Bitcoin’s price movements preceded others when the war began, leading to a scenario where other asset classes began to follow its lead, while Bitcoin itself maintains a more stable trajectory.
