Analysis: Middle East conflict drives institutional return to the crypto market, with Bitcoin outperforming gold and US stocks

Crypto News: Amid escalating tensions in the Middle East impacting global markets, Bitcoin has recently outperformed traditional assets. Data shows that since the outbreak of conflicts related to Iran, Bitcoin has risen approximately 3.5% to around $68,000. During the same period, gold has fallen about 5%, silver about 12%, and the Nasdaq 100 and S&P 500 have declined roughly 1% and 1.5%, respectively. Market analysis suggests that Bitcoin’s recent rebound is related to deleveraging in the derivatives market. Data indicates that the open interest of Bitcoin futures has decreased, and the funding rate for perpetual contracts remains around -3.5%, indicating that short positions are still crowded. Meanwhile, the “Coinbase premium” has reappeared, and continuous net inflows into spot ETFs suggest that U.S. institutional investors may be viewing the current price range as a new opportunity for deployment. On the macro front, driven by geopolitical conflicts, WTI crude oil briefly surged to about $116 per barrel, then retreated to around $100 after G7 announced plans to release strategic reserves. The US dollar index rose to approximately 99, and the 10-year US Treasury yield increased from around 4% to about 4.2%.