Bitcoin Holds Steady Amid Middle East Tensions
Tensions Spark Mixed Market Views on BTC
Bitcoin showed relative resilience Tuesday morning, remaining broadly stable despite ongoing tensions in the Middle East, according to data from tracking service CoinGecko. The cryptocurrency edged down 1.3% on the day, trading at approximately $105,552.
This stability contrasts somewhat with traditional risk assets, as major equities markets also held steady from Friday’s initial shocks following the Israeli attack on Iran. The S&P 500 index climbed 0.94% in the last 24 hours and has increased 0.3% since the outset of the conflict.
US Policy Shifts
In a statement Tuesday, US President Donald Trump announced his desire for a “real end” to the Israel-Iran conflict, suggesting potential steps beyond a mere ceasefire.
Expert Analysis: Hedging Asset?
Analysts point to this resilience as potentially reflecting Bitcoin’s increasing acceptance as a hedging tool. Illia Otychenko, CEX.IO analyst, noted Bitcoin’s tendency to move in sync with traditional risk assets during uncertainty but often displaying strength in recovery afterward. This pattern was evident with BTC briefly dipping below $102,000 before rebounding.
While US-dollar assets appeared to absorb initial concerns, Bitcoin ETFs saw increased inflows, with $408.6 million entering these funds Monday – the second-highest daily total for the month.
Market Sentiment and Outlook
Despite significant price movements in the past month (including a recent decline from its May 2025 all-time high), the prevailing sentiment among Bitcoin predictors, as gauged by the Myriad prediction market, suggests limited expectations for short-term gains. Over 77% predict the cryptocurrency closing below $107,000.
Data shows institutional investors may be approaching Bitcoin differently. Rajiv Sawhney of Wave Digital Assets anticipates stability holding until US policy intentions regarding the broader conflict become clearer. He highlighted ongoing US tariff concerns alongside the Middle East situation as significant factors.
Analysts foresee medium-term buying interest from institutions but caution that large-scale liquidations currently seem “less likely” due to existing market conditions.
Analysts described the current market environment as one where risk assets are generally defensive due to the high possibility of further escalation, geopolitical contagion, and macroeconomic headwinds.
Jamie Coutts of RealVision observation suggests the classification might be transitioning. While still acting as “risk” in the short term, Coutts posits that Bitcoin is increasingly viewed by large “allocators” not as a risky position but as a “neutral” asset, comparable to “digital gold.” This might explain its more stable performance compared to previous geopolitical crises.
In conclusion, the current geopolitical tension appears to be having a less pronounced immediate effect on Bitcoin prices than anticipated. Experts suggest the market awaits more clarity, especially on US involvement, before expecting significant direction. Short-term stability seems more likely than major volatility in the immediate foreseeable future.
