A five-day strike pause ordered by US President Donald Trump after diplomatic talks with Iran sent Bitcoin soaring above $70,000 over the weekend, marking one of the sharpest risk rallies in weeks.
The announcement came after Trump confirmed that American and Iranian officials had held productive discussions, though Iranian media denied any direct communication with Washington had taken place.
Gold Bleeds While Bitcoin Climbs
Since US-Israeli airstrikes began targeting Iranian military infrastructure on February 28, Bitcoin has gained roughly 30%, climbing from around $66,200 to near $72,650.
Gold has moved in the opposite direction. The precious metal dropped from close to $4,400 an ounce to below $4,300 — a loss of about 2% over the same period.
At one point during early trading sessions, gold dipped under $4,250. From its recent all-time high, gold is now down nearly 25%, a pullback that analysts say has wiped out more than $10 trillion in precious metals market value.
Silver has suffered even more sharply, with losses approaching 50% from peak levels.
Iran’s decision to seal the Strait of Hormuz following the initial strikes disrupted roughly 20% of the world’s oil supply and sent shockwaves through commodity and equity markets.
The S&P 500 is down about 1% since the conflict began. The Nasdaq has slipped around half a percent.
Capital Flows Tell The Story
Money has been moving. Between March 16 and 20, Bitcoin spot ETFs logged net inflows of $94.5 million — the fourth straight week of positive flows.
Some gold-backed funds, reports indicate, have seen declining assets under management during the same stretch.
A stronger US dollar and elevated Treasury yields have added pressure on gold, which offers no yield and becomes less attractive globally when priced in a rising currency.
Bitcoin’s performance during this conflict has caught many traditional market participants off guard.
The asset has long been seen as too volatile to function as a store of value during geopolitical crises. This time, the data shows something different.
Traders Eye $75,000 As The Next Test
Analysts are now watching the $72,000 level closely. A sustained break above that threshold, reports note, could open a path toward $75,000.
Momentum indicators currently suggest buyers remain active, though the situation on the ground remains fluid.
Despite Trump’s five-day halt on strikes, US-Israeli forces reportedly hit Iranian energy facilities again Monday, adding fresh uncertainty to what had briefly looked like a de-escalation.
How long Bitcoin can hold its ground — and whether gold can recover — will depend heavily on what happens in the coming days at the negotiating table.
Featured image from Vaulted, chart from TradingView
