Bitcoin Hits $74K as US-Iran War Enters Third Week: Here's Why
Bitcoin surged to $74,157 Monday, up 3.1% on the day and 9.1% over the week, despite intensifying U.S.-Iran conflict and broader Middle East tensions. Market volatility from the conflict has sent oil prices rising to $99.25 per barrel, though still below last week's peak, while gold is down about 7% since late February. In contrast, Bitcoin has gained 11% over that period, widening the gap between it and gold. Analysts attribute Bitcoin’s rally not specifically to war, but to macroeconomic consequences such as high oil prices, weak growth, and growing fiscal deficits, increasing future U.S. fiscal pressure and liquidity concerns. Selling by short-term speculators has subsided, with medium- and long-term holders now dominant, as confirmed by metrics like "Bitcoin Days Destroyed” falling to near three-year lows. Options data suggest further upside potential, with market makers potentially forced to buy more Bitcoin if prices continue to rise. Experts emphasize that though Bitcoin acts as a sovereign alternative asset during crises, the rally’s structure is fragile and upcoming monetary policy decisions remain crucial.
