Global financial markets have turned volatile since the start of the ongoing Iran war, with the conflict disrupting oil supplies and triggering sharp swings in equities and commodities. As uncertainty
deepens, investors are increasingly shifting money away from riskier assets such as stocks and looking for safe places to park their funds.
Traditionally, gold and the US dollar have served as the primary safe-haven assets during geopolitical crises. However, the current conflict has seen an unexpected performer: Bitcoin.
Bitcoin outperforms traditional safe havens
Since the fresh escalation in the Iran conflict on February 28, bitcoin has surged over 10% and crossed the $72,000 mark, according to an Investopedia report. Bitcoin has now breached the $75,000 mark.
The rise is notable because it has come at a time when both oil markets and global equities are witnessing sharp fluctuations.
Although over 10% jump may not appear dramatic in cryptocurrency markets, it stands out in the current environment where investors are struggling to navigate geopolitical uncertainty.
Bitcoin has historically been viewed as a high-risk asset, but the recent price action suggests that some investors may be beginning to treat it as an alternative hedge during crises.
Why has bitcoin jumped
Nischal Shetty, founder of WazirX, said, “Bitcoin reached the $75k mark, currently trading at $74,844, with a daily ‘Buy’ technical signal. Technical indicators like MACD and Momentum signal bullishness, while an RSI around 62 suggests strength without being overbought. The latest surge in Bitcoin appears to be fuelled mainly by derivatives activity, with short liquidations and increased leveraged trading pushing prices higher.”
Avinash Shekhar, co-founder & CEO of Pi42, said, “Bitcoin is showing early signs of entering a structural accumulation phase, with on-chain data indicating steady buyer absorption and continued decline in exchange balances. Investors appear to be moving assets into long-term custody even as prices hold near the psychologically important $70,000 zone. Renewed institutional participation through ETF inflows and visible whale accumulation is also helping build a stronger demand base despite global macro uncertainty.”
For investors, this phase calls for disciplined positioning rather than chasing short-term price spikes. Gradual allocation strategies such as staggered buying, maintaining adequate liquidity buffers, and focusing on long-term portfolio balance can help navigate ongoing volatility. Watching key resistance levels around $73,000 to $75,000 will be important, as a sustained move above this range could indicate the next expansion cycle while consolidation in the near term remains likely, he added.
Investors increase exposure to crypto
Data cited by Investopedia shows that funds linked to bitcoin have witnessed strong inflows since the conflict intensified.
Two major funds — the iShares Bitcoin Trust and the Fidelity Wise Origin Bitcoin Fund — have together attracted more than $1.1 billion in inflows since the initial strikes on Iran, according to data compiled by Farside Investors.
Is bitcoin really a safe-haven asset?
Despite the recent rally, experts remain divided on whether bitcoin can truly be considered a safe-haven investment.
During geopolitical shocks such as the Russia-Ukraine War, the Israel–Hamas War, and the COVID-19 pandemic, cryptocurrency trading volumes have often surged.
This suggests that bitcoin sometimes benefits from crisis-driven market activity.
However, many seasoned investors argue that bitcoin still lacks the characteristics of a reliable safe haven. One key limitation is that central banks do not hold bitcoin as reserves, while gold continues to be accumulated by monetary authorities around the world.
Why gold has not rallied sharply
Historically, gold has been the biggest beneficiary during geopolitical conflicts. But, during the current Iran war, its price gains have been limited.
Gold briefly traded at around $5,327 per ounce a week after the conflict began but has since stabilised in the $5,000–$5,200 range.
The muted movement is largely due to the strengthening of the US dollar. When the dollar gains value, gold becomes more expensive for buyers using other currencies, which can reduce demand.
Rising oil prices are also fuelling inflation concerns. Higher inflation in the US reduces the chances that the Federal Reserve will cut interest rates soon.
If investors expect interest rates to remain elevated, gold tends to become slightly less attractive because it does not generate interest income.
Market uncertainty likely to persist
With the Iran conflict showing no immediate signs of de-escalation, volatility across global markets is expected to continue.
In such an environment, investors may continue to diversify across assets, including gold, the US dollar, and increasingly, bitcoin, as they attempt to protect their portfolios from geopolitical risks.
