Bitcoin Defies Global Panic: Crypto Climbs Toward $68K as Iran War Fears Shake Oil, Stocks and Bonds

As fears of a prolonged conflict involving Iran rattled global markets and sent oil prices soaring past $100 a barrel, one asset moved against the tide: Bitcoin.

The world’s largest cryptocurrency edged higher Monday morning, rising 0.7% to about $67,700 by 5:42 a.m. in New York, even as stocks across Asia and Europe plunged, government bonds sold off, and investors braced for a potential inflation shock driven by surging energy prices.

While traditional markets struggled to absorb the geopolitical shock, crypto markets showed a surprising degree of resilience.

The rally wasn’t limited to Bitcoin. Major digital assets followed suit:

Meanwhile, global investors were dumping conventional assets. Rising oil prices intensified fears that an escalating Middle East conflict could fuel inflation and disrupt economic recovery worldwide.

In the bond market, the sell-off pushed US 10-year Treasury yields to their highest level in a month, underscoring the growing anxiety gripping financial markets.

Despite Bitcoin’s ability to rise amid the chaos, market sentiment remains cautious.

Crypto markets have been struggling to recover from a sharp downturn that began in October, and traders are still positioning defensively.

One key indicator shows lingering fear: the 24-hour put-call ratio for Bitcoin options on Deribit stands at 1.3.
A ratio above 1 typically indicates stronger demand for protective bets against falling prices, suggesting many investors remain wary of another downturn.

According to Alex Kuptsikevich, chief market analyst at FxPro, the risk of further declines hasn’t disappeared.

Another sign of fragile confidence is the steady outflow from Bitcoin investment funds.

Data compiled by Bloomberg shows that US-listed spot Bitcoin ETFs have recorded nearly $6 billion in net outflows since November, highlighting that institutional investors have been pulling capital from the sector.

These withdrawals suggest that even though Bitcoin is holding up better than many traditional assets during the latest geopolitical shock, large investors remain cautious about committing new money to crypto.

Interestingly, some analysts believe Bitcoin’s recent resilience may be partly due to the lack of excessive leverage in the market.

Damien Loh, chief investment officer at Ericsenz Capital, noted that Bitcoin’s relative strength compared with stocks and other risk assets may indicate that many speculative long positions were already wiped out during earlier market declines.

With fewer leveraged bets remaining, the cryptocurrency may now be less vulnerable to cascading liquidations during market stress.

Market strategists say Bitcoin now sits at a critical technical crossroads.

According to Hayden Hughes, managing partner at Tokenize Capital, traders are watching several key price levels closely:

A decisive move in either direction could determine the short-term trajectory of the crypto market.

Bitcoin’s ability to climb while oil spikes and equities tumble is fueling a renewed debate about whether the cryptocurrency is beginning to behave more like a macro hedge rather than a pure risk asset.

For now, however, analysts caution that the market remains fragile.

With geopolitical tensions rising, inflation fears mounting, and institutional flows turning negative, Bitcoin’s resilience may be tested again in the days ahead.

But Monday’s market reaction offered a glimpse of a shifting financial landscape—one where the world’s first cryptocurrency may increasingly find itself moving to a different rhythm than traditional markets.