A five-day strike halt ordered by U.S. President Donald Trump following diplomatic talks with Iran sent Bitcoin surging above $70,000 over the weekend, marking one of the sharpest risk gains in weeks.
The announcement comes after President Trump confirmed that U.S. and Iranian officials had productive discussions, but Iranian media denied that any direct communication with the United States had taken place.
Gold bleeds while Bitcoin rises.
Since U.S.-Israeli airstrikes began targeting Iran’s military infrastructure on February 28, Bitcoin has risen about 30%, rising from about $66,200 to about $72,650.
Gold moved in the opposite direction. Prices for the precious metal fell from near $4,400 per ounce to less than $4,300. That’s a loss of about 2% over the same period.
At one point during the early trading session, gold fell below $4,250. Compared to recent all-time highs, gold prices are now down nearly 25%, a decline that analysts say has cost the precious metal more than $10 trillion in market value.
Silver was hit even harder, with losses approaching 50% at peak levels.
Iran’s decision to block the Strait of Hormuz after the initial attack disrupted about 20% of global oil supplies and sent shockwaves through commodity and stock markets.
The S&P 500 index has fallen about 1% since the dispute began. The Nasdaq was down about 0.5%.
BTCUSD now trading at $69,850. Chart: TradingView
The story of capital flow
Money is moving. From March 16-20, the Bitcoin Spot ETF recorded net inflows of $94.5 million, marking the fourth consecutive week of positive flows.
Some gold-backed funds have seen a decline in assets under management over the same period, according to the report.
The strength of the U.S. dollar and rising Treasury yields have added pressure to gold. Gold becomes less attractive globally when it has no yield and is priced in a rising currency.
Bitcoin’s performance during this dispute has puzzled many traditional market participants.
The asset has long been considered too volatile to serve as a store of value during geopolitical crises. This time the data shows something different.
Next test Traders Eye $75,000
Analysts are currently closely watching the $72,000 level. A sustained break above this threshold could pave the way for $75,000, according to the report.
Current momentum indicators suggest that buyers remain active, but conditions on the ground remain fluid.
US-Israeli forces reportedly struck Iranian energy facilities again on Monday, despite President Trump’s five-day moratorium on airstrikes, adding new uncertainty to what had briefly appeared to be a easing of tensions.
How long Bitcoin can hold its ground, and whether gold can recover, will largely depend on what happens at the negotiating table in the coming days.
Featured image from Vaulted, chart from TradingView
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