Bitcoin Breaks $70,000 as Geopolitical Turmoil Fuels Crypto Market Risk Appetite

On March 10, Bitcoin's price surged by 4.6%, breaking the $70,000 mark, driven by a confluence of factors. On the same day, the U.S. Department of Defense announced its most intensive military strikes against Iran to date. Simultaneously, U.S. President Trump stated in an interview that the conflict was "largely coming to an end" and that "we have won in many ways." This conflicting signal triggered a reassessment of the risk of escalating conflict in the market.

Crude oil prices became a key transmission channel. In the initial stages of the military action, Brent crude briefly soared to $120 per barrel. However, as Trump released conciliatory signals, oil prices quickly retreated below $100, alleviating inflation concerns and boosting global risk assets, with the crypto market benefiting accordingly.

Crypto ETF inflows resumed, while the Bitcoin premium on Coinbase remained negative, indicating that spot market buying has not fully exploded. At the same time, stablecoin reserves continued to grow, exhibiting a "powder keg" characteristic – a large amount of capital remains on the sidelines, awaiting clearer signals before entering the market. This pattern has repeatedly emerged before the start of multiple bull runs from 2024 to 2025. During traditional financial market closures (such as when military action breaks out on weekends), the crypto market becomes the only trading channel for global investors to reflect geopolitical risks and safe-haven sentiment in real-time. Trading firm QCP Capital pointed out that although Bitcoin has not fully realized the "digital gold" narrative, its function as a "digital safe-haven exit" is increasingly prominent, especially in the Gulf region, where crypto assets are becoming an important alternative in the face of currency volatility and political uncertainty. Looking ahead, the market's focus will shift to the upcoming U.S. CPI data and Federal Reserve policy signals. Trump warned Iran that blocking oil shipments through the Strait of Hormuz would be met with a "twenty-fold response." Whether the future situation moves towards de-escalation or further escalation will directly determine whether Bitcoin can continue its current rally or face a new round of volatility.