Analysts at QCP Capital noted that despite escalating tensions in the Middle East, proponents of digital gold have yet to show signs of full-scale panic.
After a brief dip following news of the conflict between Iran and Israel, the leading cryptocurrency rebounded from a weekly low of $102,800 to $107,000.
Experts believe that Bitcoin’s price stability is supported by ongoing institutional accumulation. Companies like Metaplanet and Strategy continue to purchase the asset at local lows, and spot Bitcoin ETFs have seen inflows for the seventh consecutive week.
The market appears to have “regained its footing,” especially after the main benchmark held above the key psychological threshold of $100,000, despite the initial shock.
“A modest 3% pullback seems insignificant compared to April last year, when amid similar tensions between Iran and Israel, Bitcoin fell by more than 8%,” noted QCP.
Analysts emphasized that the volatility of options on the leading cryptocurrency remains below 40, while the VIX hovers around 20. Both levels are historically low, given the current global situation.
US Treasury bonds and some Asian government securities continue to attract capital, indicating that markets have not yet shifted into full risk-off mode.
However, a potential blockade of the Strait of Hormuz by Iran could trigger a sharp rise in oil prices, specialists suggested. Further escalation of the conflict or direct US military intervention could seriously destabilize risk assets.
“Ironically, some argue that these very risks could be structurally bullish for Bitcoin. Given that the asset is trading just 6% below its all-time highs, recent price behavior supports the narrative that the adoption of digital gold is fueled by macroeconomic shifts, the growing burden of sovereign debt, and geopolitical instability,” concluded QCP.
In June, the price of the leading cryptocurrency exceeded $107,000 amid capital outflows from spot ETFs and news of unrest in the US.
On June 13, Bitcoin’s rate dropped to $103,639 following reports of Israeli airstrikes on Iran.
By June 16, the digital gold’s rate returned to levels above $107,000.