Markets Bleed While Bitcoin Holds Ground Amid Iran Crisis

Global markets are under severe pressure as geopolitical tensions between the United States and Iran escalate, threatening one of the world's most critical oil shipping routes — the Strait of Hormuz. Risk assets are selling off broadly, but Bitcoin is showing surprising resilience compared to traditional safe havens.

Gold, long considered the go-to hedge during periods of geopolitical uncertainty, has now fallen for nine consecutive days, shedding approximately 18% from recent highs and trading near $4,360. Asian equities have declined for a third straight session and are approaching correction territory. Bond yields are climbing as investors fear the prolonged conflict could reignite inflation and force central banks to reverse course on rate cuts. Brent crude has surged to $113 per barrel, up more than 70% year-to-date, after Goldman Sachs described the Hormuz disruption as the largest supply shock ever recorded in global crude markets, raising its full-year Brent price target to $85.

Amid the chaos, cryptocurrencies are mixed but outperforming many traditional assets. Bitcoin is trading around $68,316, down roughly 6% on the week but holding firmly above the $66,000 support level that has withstood every major war-driven sell-off since late February. Ether gained 2.7%, XRP rose 2%, while Solana and Dogecoin posted the steepest weekly losses among major tokens.

Analysts at Two Prime, an SEC-registered investment advisor, say Bitcoin's relative strength is not accidental. They argue that the sharp gold reversal is structural, driven by China and allied nations systematically liquidating gold positions to prioritize liquidity over safety as conflict deepens. Bitcoin and its derivatives markets, they note, have held up well given the macro environment.

With Trump's 48-hour ultimatum to Iran expiring Monday evening, markets remain on edge. If tensions escalate further, volatility across all asset classes is expected to intensify significantly.