War with Iran pushes Bitcoin price to $70,000: here’s why

The Bitcoin price is once again moving towards the $70,000 mark. This is happening while volatility in the financial markets is increasing sharply due to the escalating war in the Middle East.

BTC rose by almost seven percent today to more than $70,000, after the cryptocurrency had fallen to around $63,000 over the weekend. Ethereum (ETH), XRP and Solana (SOL) also showed a strong increase, each gaining more than eight percent.

Crypto market responds immediately to geopolitical shock

The crypto markets took a hit on Saturday after the United States jointly with Israel launched a large-scale attack on Iran. In addition to military and nuclear targets, the complex of Iranian Supreme Leader Ayatollah Ali Khamenei was also destroyed. Iran confirmed his death and announced 40 days of national mourning.

Because crypto can be traded 24/7, the market responded immediately. Bitcoin initially fell towards $63,000, while traditional markets were only able to react on Monday. Iran, meanwhile, hit back with missiles and drones on targets in Israel, the Gulf states and US bases in the region. The Strait of Hormuz, through which some 20 million barrels of oil flow every day, is largely blocked. Shipping giant Maersk has suspended all shipments through the strait.

According to Bohan Jiang, derivatives trader at FalconX, the strength Bitcoin is now showing is striking. The increase takes place despite a stronger dollar and increasing geopolitical tensions. Yet Bitcoin remains underrepresented in many institutional portfolios, according to FalconX.

Strategy buys again

Meanwhile, Strategy, Michael Saylor’s company, continues to buy Bitcoin unabated. The company today reported its 101st purchase: 3,015 BTC for about $204 million, at an average price of $67,700.

Strategy now owns 720,737 BTC, purchased for a total of $54.77 billion. With an average purchase price of almost $76,000, the company currently has an unrealized loss of more than $7 billion.