Yesterday, 06:04 AM
Crypto Decouples: BTC Hits One-Month High as Global Markets Reel from War
Something unusual happened this week. As the Middle East descended into its most serious military confrontation in decades, Bitcoin not only survived the shock but also rallied through it. BTC flash-crashed to $63,000 on Saturday as U.S.-Israeli airstrikes killed Iran's Supreme Leader, then staged a relentless recovery to a one-month high near $73,300 by Wednesday, a 16% swing that left most traditional asset classes behind.
The contrast with the rest of the world's markets was stark. The S&P 500 lost as much as 2.5% intraday on Tuesday before clawing back. South Korea's Kospi suffered its worst session in decades, plunging 12%.
Germany's Dax dropped 4.2%. Gold, the textbook haven, initially spiked to a record $5,418 on Monday before reversing violently, losing more than 5% to $5,042 on Tuesday as a surging dollar and rising yields forced liquidations across precious metals.
Silver briefly topped $96 before crashing 8% to $81. Even gold could not hold its bid in the face of the oil shock.
Crude oil was the week's dominant force. Brent surged past $83 per barrel, its highest since mid-2024, as Iran briefly closed the Strait of Hormuz and struck a Saudi refinery. WTI crude is now up 37% year-to-date, raising the spectre of a renewed inflationary impulse just two weeks before the Fed's March 18 meeting. By Wednesday, early signs of de-escalation emerged: Treasury Secretary Bessent signalled support for Gulf shipping lanes, Trump offered naval escorts, and reports surfaced of Iranian back-channel outreach. Oil posted its first decline since the conflict began, giving risk assets room to breathe.
Against that backdrop, crypto's recovery stands out. Whether it marks the beginning of a genuine decoupling narrative or reflects a leverage-flushed market with limited downside sellers left is the question that will define the weeks ahead.Read CloseOption Broker Review (10$ No Deposit Bonus)