Bitcoin traded at $70,352 on Tuesday morning, up 3.1 percent. Bitcoin, which fell below 68 thousand dollars for a short time at the weekend, started the week with a strong recovery. Other leading cryptocurrencies such as Ethereum, Solana, Dogecoin and XRP also rose between 2 and 4 percent.
Financial Markets Shaken by Geopolitical Developments
In an important development that came to the fore on Tuesday, it was stated that Saudi Arabia gave the US army access to King Fahd Air Base. The Kingdom had previously stated that these bases could not be used against Iran. The United Arab Emirates also took a similar step.
Thus, the possibility of the Gulf countries being involved in the military operation signaled that the ongoing conflict could turn into a multinational regional coalition. This situation indicates an escalation in the markets beyond the risks foreseen to date.
There was no message of reconciliation from the Iranian side. The Deputy Speaker of the Iranian Parliament repeated similar statements made in the Fars News Agency the previous evening, completely excluding the possibility of meeting with the USA. On the other hand, the Strait of Hormuz, while critical for energy traffic in the region, is still largely closed. It is reported that a limited number of ships enter and exit the Bosphorus.
Sudden Fluctuation in Global Asset Prices
With the rapid increase in global risk, there were sharp movements in most classical financial instruments. S&P 500 futures fell 0.5 percent. It was predicted that European stock markets would decrease by 0.8 percent at the opening. The price of crude oil increased by 4 percent and reached 104 dollars. There was a 0.3 percent increase in the US Dollar index. Gold, on the other hand, continued its longest consecutive series of depreciation by falling 1.5 percent.
Such a prolonged decline in gold, traditionally considered a safe haven, has produced an unprecedented result in an environment where war is gradually expanding. Experts evaluate that money management funds are selling gold due to the forced selling pressure they face in other positions. It is noteworthy that Bitcoin maintains its stability in its price range despite this rapid loss of value in gold.
“Bitcoin, which usually stands out with its volatility, remains stable, while gold, which is normally considered a safe haven, is seeing sharp sales.”
According to analysts, the five-day deadline given by former US President Donald Trump to Iran will expire at the end of this week. However, Saudi Arabia’s involvement as a party in the conflict could radically change the balance. The participation of a regional coalition in the conflict could put trade routes, especially oil infrastructure, at risk.
Bitcoin stands out with its effort to hold on to the $70,000 level despite geopolitical uncertainty and the increasing possibility of war. Developments in the coming days may determine a new direction in the markets.
