Bitcoin rallied above $71,000 on Wednesday, climbing more than 6% over the past 24 hours and spearheading gains across the broader cryptocurrency market.
The world’s largest cryptocurrency by market capitalization reached $71,023 during European trading hours, according to CoinDesk data, demonstrating notable resilience even as geopolitical tensions escalate in the Middle East. In contrast, gold — long regarded as a traditional safe-haven asset — has recently pulled back.
The upward momentum extended to other major digital assets. Ether (ETH), XRP and solana (SOL) each recorded gains ranging from 4% to 6%, following bitcoin’s lead.
The CoinDesk 20 Index, which measures the performance of leading cryptocurrencies, rose more than 5% to around 2,025.
Analysts at Tagus Capital suggested that bitcoin may be starting to display defensive qualities during periods of market stress. However, the firm pointed out that gold’s recent decline indicates that even traditional safe-haven assets can be influenced by shifting market conditions.
“Bitcoin may now exhibit some defensive characteristics during crisis periods, but gold’s retreat highlights that even classic safe-havens are not immune to market dynamics, positioning Bitcoin as a more flexible yet still high-beta alternative,” the firm wrote in its daily newsletter.
Bitcoin’s latest rally pushed prices to their highest level since Feb. 8, even as the geopolitical situation continues to worsen. Iran’s move to block oil shipments through the Strait of Hormuz has raised concerns about potential energy supply disruptions and rising global inflation.
Despite the escalating tensions involving Iran, Israel and the United States since the weekend, bitcoin has shown relative stability, with declines largely limited near the $65,000 level.
Meanwhile, gold has reversed part of its earlier gains. The precious metal briefly surged above $5,400 per ounce on Monday before easing to roughly $5,160.
Asian stock markets have also faced pressure amid the developments. Major regional indexes have dropped sharply, with South Korea’s Kospi leading the declines as rising oil import costs weigh on market sentiment.
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