Bitcoin (BTC) climbs above the $71K-72K zone, easing a stronger dollar, rising oil and Middle East war tensions as global stocks wobble.
A modest win for Bitcoin
In London morning, bitcoin was steady near intraday levels, while regional stock indexes traded mixed and volatility remained high in energy and currency markets. The European desks saw reduced interest every time BTC approached $71k, indicating that buyers were willing to defend the area despite the macro noise.
Bitcoin’s resistance comes as the Iran war has sent oil soaring, raising the risk of a full-scale energy strike, and some officials are warning that crude oil could even test much higher levels of $200 a barrel if the destruction in the Strait of Hormuz worsens, as seen in Wednesday’s Iranian statement. This slight increase supports the idea that BTC has passed the first stress test of the Iran shock and its consequences.
Historically, such accelerations in energy expectations and inflation have been bad news for Bitcoin, as tighter financial conditions reduce liquidity from speculative assets. However, BTC is now consolidating near the bottom of its recent range instead of retracing the lows seen in the previous Middle East headlines. This is not a surprise for traders who are closely following the leading movement of cryptocurrency around the geopolitical conflict in Iran. As reported in an article yesterday, “Bitcoin is trending positively when macro conditions are more supportive for risk assets.”
Awareness continues to be wise
Despite this positive trend, traders should not claim victory (yet). As reported yesterday by our sister website NewsBTC, Mike McGlone, Bloomberg’s senior financial strategist, warned that Bitcoin could still fall back and possibly fall below the $10,000 area. As he claims, BTC remains part of a “broader macroeconomic performance that is subject to deflationary pressures, excess risk assets, and what he described as an excess in the digital asset mix.”
At the moment, McGlone believes that bitcoin is behaving like a risk asset during a bear phase, which is fueling the narrative that bitcoin is no longer behaving like the so-called “digital gold.”
With geopolitical turmoil fueling both RWA and digital assets, traders would do well to view each Bitcoin rally as a rally to volatility, rather than as hard evidence that the tide has turned decisively in BTC’s favor.
BTC’s price trends to the upside on the daily chart, reaching the highs $72k. Source: BTCUSD on Tradingview
Cover image from Perplexity, BTCUSD chart from Tradingview
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