Monday’s ceasefire trade lasted about 18 hours.
Bitcoin climbed 3.1% to $70,352 on Tuesday morning, recovering from the weekend’s slide below $68,000, with ether (ETH), solana’s SOL, dogecoin and xrp gaining between 2-4%.
The Wall Street Journal reported Tuesday that Saudi Arabia has agreed to give the U.S. military access to King Fahd Air Base, reversing its earlier position that its bases couldn’t be used to attack Iran. The UAE has taken similar steps.
Gulf states joining the war directly would transform the conflict from a U.S.-Israel operation into a broader regional coalition, a significant escalation from what markets had been pricing.
Iran’s deputy speaker ruled out talks with the U.S., echoing the Fars news agency denial from Monday evening. The Strait of Hormuz remains effectively shut with only a trickle of vessels making their way through.
Traditional markets responded immediately. S&P 500 futures fell 0.5%. European shares were set to drop 0.8% at the open. Brent crude jumped 4% to about $104. The dollar strengthened 0.3%. Gold fell 1.5%, extending what is now its longest daily losing streak on record.
The gold collapse continues to be the most disorienting signal in global markets. A safe-haven asset falling to record losing streaks during an active and widening war breaks every historical precedent.
The most likely explanation is forced selling by funds facing margin calls across other positions, with gold being the most liquid asset to sell. But whatever the cause, it makes bitcoin’s relative stability even more notable. The token that’s supposed to be the volatile one is holding a range while the one that’s supposed to be steady is in freefall.
The five-day window Trump gave Iran expires Saturday, but Saudi Arabia joining the conflict changes the calculus entirely. A regional coalition fighting Iran is a different war from a U.S.-Israel air campaign, and it puts oil infrastructure on both sides of the Gulf at risk.
Bitcoin is holding $70,000 on a Tuesday morning where everything else is deteriorating. Whether that’s resilience or just the market waiting for the next headline to react to is the question the rest of the week will answer.