Bitcoin and other major cryptocurrencies rebounded despite ongoing Middle East tensions and a flare-up with Iran, signaling market stabilization. U.S. manufacturing data beat expectations and equities pared losses, supporting risk appetite. The rebound came even as tensions with Iran persisted, with Bitcoin rising to around $69,400 in early U.S. trading, up about 3.6% from the prior session; Ethereum, Solana and XRP also rose by similar margins. Digital-asset equities also firmed, with Circle up about 12%, MicroStrategy up 6%, and Galaxy Digital up around 4.7%.
The February ISM manufacturing PMI rose to 52.4, extending growth for the second straight month and marking the first time since Q4 2022 that the index has remained above 50 for two consecutive months. Last week’s PPI gains and crude-oil surges, along with strong manufacturing data, largely pushed the Fed’s rate-cut expectations out of the market; however, traders had already priced in tighter policy, limiting Bitcoin’s downside. Gold gained about 2% and oil rose roughly 7%, while the dollar index posted the largest single-day move in weeks, up around 1%.
Analysts say rising geopolitical tensions tend to lift Bitcoin as a hedge alongside gold. With the manufacturing rebound supporting the economy, Bitcoin is increasingly viewed as a “hybrid asset” that blends risk assets with a store of value.
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