Bitcoin Remains Firm at $71K Amid Donald Trump Warning of Strikes on Kharg Island

Bitcoin is holding near $71,000 despite escalating tensions in the Middle East, remaining firmly higher on the week as markets shift attention to the upcoming Federal Reserve meeting on March 17–18.

The largest cryptocurrency was trading around $71,000 early Saturday, down about 0.7% over the past 24 hours after U.S. forces struck military targets on Kharg Island. The island is a critical point for Iran’s oil exports, making the development a notable escalation in the ongoing regional conflict.

Bitcoin had climbed to an intraday high of $73,838 on Friday before reversing lower following the news. The roughly 3.5% pullback was sharp but limited, suggesting traders are becoming more accustomed to geopolitical shocks that previously might have triggered steeper declines.

Weekly performance across the crypto market remains positive. Bitcoin has gained around 4.2% over the past seven days. Ether rose roughly 5.5% to $2,090, while Dogecoin advanced about 5%. Solana climbed 4.2% to $88 and BNB added around 4.5% to $655.

Despite the war intensifying, most major digital assets remain in positive territory for the week, indicating that markets are gradually adjusting to the geopolitical backdrop.

In the early days of the conflict, each new development triggered outsized market reactions as traders struggled to assess the risks. More recently, however, a pattern has emerged: military escalations drive oil prices higher, bitcoin dips briefly, and then the market stabilizes.

While traders appear less reactive to headlines, the $73,000–$74,000 range continues to serve as a key resistance zone. Bitcoin has attempted to break above that level four times over the past two weeks but has failed each time.

Comments from Donald Trump introduced a new layer of uncertainty late Friday. Posting on Truth Social, Trump said oil infrastructure had been spared “for reasons of decency,” but warned the U.S. could reconsider if Iran continues to disrupt shipping through the Strait of Hormuz.

Iran responded by warning that any attacks on its energy facilities would lead to retaliatory strikes against U.S.-linked infrastructure in the region. Such an escalation could worsen the supply shock that the International Energy Agency has already described as the largest in history.

Crypto derivatives markets reflected the volatility of Friday’s session. Roughly $371 million in positions were liquidated over the past 24 hours. Short liquidations totaled about $207 million, exceeding the $163 million in long liquidations. That indicates bearish traders were squeezed during the rally toward $73,800 before the Kharg-related reversal forced newly opened long positions to unwind.

Investors are now turning their attention to the Federal Reserve’s policy meeting next week.

With crude oil trading above $100, a major energy supply disruption underway, and a conflict entering its third week without a clear resolution, concerns about stagflation are gaining traction in financial markets.

According to the CME Group’s FedWatch tool, traders currently assign more than a 95% probability that the central bank will keep interest rates unchanged within the 3.5%–3.75% range.

Still, markets will likely focus less on the decision itself and more on updated projections and comments from Fed Chair Jerome Powell. Any signal that policymakers could consider additional rate hikes may pressure risk assets, including cryptocurrencies, which have spent months anticipating rate cuts that have yet to materialize.