Bitcoin's price has rebounded strongly, successfully breaking through the $73,000 mark and reaching a nearly one-month high. This latest surge is primarily attributed to the continued significant inflows into U.S. spot Bitcoin ETFs, gradually restoring market confidence. Despite ongoing geopolitical tensions in the Middle East, investor interest in digital assets is reigniting.
Data shows that Bitcoin's price increased by nearly 8% on the day, while Ethereum, the second-largest crypto asset, also strengthened in tandem, breaking through $2,100 with a single-day gain of 9%. Simultaneously, global stock markets generally rose, and crude oil prices stabilized. The market widely anticipates that the Iranian situation may not escalate further, providing support for risk assets.
Previously, Bitcoin had fallen to around $63,000 due to the impact of U.S. and Israeli military strikes against Iran. However, according to Bloomberg data, U.S. spot Bitcoin ETFs recorded a combined net inflow of over $680 million in the past two days, indicating that institutional funds are returning.
CryptoQuant's Head of Research, Julio Moreno, pointed out that Bitcoin had been in a consolidation phase for the past month, and the recent price breakout has led to rapid expansion of positions in the derivatives market, suggesting that investors are actively building long positions.
It is worth noting that despite the current price rebound, Bitcoin is still about 40% lower than its all-time high in October this year. This position reflects the characteristics of a corrective rebound after a long period of decline, rather than a full-blown bull market restart.
For a long time, the crypto community has referred to Bitcoin as "digital gold," believing that it has safe-haven properties in times of crisis. However, in the past few months, this narrative has been challenged: gold prices have risen sharply, while Bitcoin's performance has been weak. But recent trends have reversed—since the Friday before the Iranian tensions escalated, Bitcoin has cumulatively risen by about 10%, while gold has fallen by about 2% over the same period.
GSR's Head of Content and Special Projects, Frank Chaparro, analyzed that the divergence between gold prices doubling and Bitcoin prices halving over the past period is unusual in the context of geopolitical conflicts, increased sanctions, and expanding fiscal deficits. But when market sentiment shifts, funds may quickly reallocate to crypto assets.
However, the market remains cautious. The current conflict, characterized by mutual airstrikes and missile attacks between Israel and Iran, has entered its fifth day, with Iranian reports claiming hundreds of deaths and the U.S. also reporting six soldiers killed. In such a highly uncertain environment, whether this round of rebound can continue remains to be seen.
