Bitcoin has rebounded to around US$70,000 despite escalating conflicts in the Middle East, diverging from most major assets as investors flock to dollars. The rally follows a steep correction from Bitcoin’s all-time high near $120,000 to roughly $60,000. While broader markets remain in risk-off mode, institutional buying through spot Bitcoin ETFs has helped support prices, said Woramet Chansen, investment adviser at Merkle.
The average cost basis of short-term holders is estimated at $88,000-$89,000, meaning many recent buyers still face losses. He said key levels to monitor include $54,500, $45,000, and $70,000-$75,000 as a near-term resistance zone where selling pressure could re-emerge.
If geopolitical tensions ease and inflation stabilises, Bitcoin could regain momentum, supported by ETF inflows and improving liquidity conditions. However, if the conflict extends into the third quarter and inflation ramps up, tighter monetary policy could pressure risk assets, including crypto, said Mr Woramet. For long-term investors viewing Bitcoin as a structural hedge against currency debasement, gradual accumulation on weakness, particularly in the $40,000-$50,000 range, is recommended, he said.
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