Bitcoin has bucked broader market trends this month, climbing approximately 10 per cent despite the Middle East conflict impacting risk assets and driving oil prices higher. The world’s largest digital coin briefly traded near US$80,000, its highest level since January. This contrasts sharply with traditional safe-haven gold, which has fallen about 4 per cent, placing Bitcoin on track for its first double-digit monthly gain since May 2025 amid economic uncertainty.
The cryptocurrency’s resilience is bolstered by substantial investor inflows, with over US$2 billion funnelled into Bitcoin exchange-traded funds recently. Bloomberg data indicates net flows turned positive in March for the first time in four months, signalling renewed institutional interest. A key driver is a buying spree by Strategy. This digital asset treasury company focuses on acquiring and holding significant amounts of digital currencies. Strategy, now the largest institutional holder, has accumulated over US$7 billion in Bitcoin over eight weeks, owning nearly four per cent of global supply.
BTC Markets crypto analyst Rachael Lucas suggests significant capital movement through regulated products provides a “structural floor” for Bitcoin’s price. Conversely, billionaire US investor Michael Novogratz expressed caution, indicating full recovery above US$100,000 is unlikely while the Iran conflict persists. He cited the war’s impact on energy prices and inflation fears, leading the US Federal Reserve to hold rates steady and dashing hopes for rate cuts. Lucas added that if Bitcoin holds above US$75,000, it signals market absorption of the Fed’s decision and robust institutional demand; de-escalation in the Strait of Hormuz could ease energy prices, softening inflation.
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