Bitcoin Holds $70K as Gulf States Join U.S.-Israel Coalition Against Iran

A brief ceasefire trade lasted less than 24 hours before global markets shifted back into crisis mode. Bitcoin climbed 3.1% to $70,352 on Tuesday morning, recovering from its weekend dip below $68,000. Ethereum, Solana, Dogecoin, and XRP each posted gains between 2% and 4%, signaling renewed crypto resilience amid escalating geopolitical tension.

The Wall Street Journal reported that Saudi Arabia has agreed to grant the U.S. military access to King Fahd Air Base, reversing its earlier stance against allowing its bases to be used in operations targeting Iran. The UAE has reportedly taken similar steps. This development transforms what was previously a U.S.-Israel air campaign into a broader regional coalition — a major escalation that markets had not previously priced in.

Iran's deputy speaker rejected any possibility of U.S. negotiations, reinforcing Monday's denial from the Fars news agency. The Strait of Hormuz remains largely closed, with only minimal vessel traffic pushing through. Brent crude surged 4% to approximately $104 per barrel in response.

Traditional markets took an immediate hit. S&P 500 futures declined 0.5%, European equities were set to open 0.8% lower, the dollar strengthened by 0.3%, and gold dropped 1.5% — extending what is now its longest recorded daily losing streak. The gold sell-off continues to baffle analysts, as safe-haven assets typically appreciate during wartime uncertainty. Forced liquidations by padding-pressured funds selling their most liquid holdings remains the prevailing theory.

With the five-day deadline Trump issued to Iran expiring this Saturday, Saudi Arabia's entry fundamentally changes the conflict's trajectory. A multinational Gulf coalition fighting Iran puts oil infrastructure across the region at serious risk.

Bitcoin holding the $70,000 level while traditional markets deteriorate raises a compelling question — is crypto finally decoupling from risk-off sentiment, or simply waiting for the next catalyst?