Crypto markets climbed Tuesday morning as traditional markets stumbled, with oil jumping on reports that the Middle East conflict could escalate with Gulf states’ involvement.
Bitcoin rose 3.1% to around $70,352, recovering from weekend lows below $68,000. Other major tokens, including ether, solana, dogecoin and XRP, gained between 2% and 4%.
The move came after The Wall Street Journal reported that Saudi Arabia had agreed to allow U.S. forces access to King Fahd Air Base, reversing its prior stance against involvement in strikes on Iran. The United Arab Emirates has reportedly taken similar steps.
A direct role from Gulf allies would significantly escalate the conflict, expanding it from a U.S.-Israel campaign into a broader regional coalition—far beyond what markets had previously priced in.
Iran signaled no willingness to engage in talks, echoing Monday’s denials from Fars News Agency. The Strait of Hormuz remains largely closed, with only limited vessels passing through.
Traditional markets reacted sharply: S&P 500 futures fell 0.5%, European shares were set to open 0.8% lower, Brent crude surged 4% to about $104 per barrel, the dollar gained 0.3%, and gold fell 1.5%, extending its longest daily losing streak on record.
Gold’s decline is unusual for a safe-haven asset amid a widening conflict. Analysts suggest forced selling by funds facing margin calls could be driving the drop, highlighting bitcoin’s relative stability—holding steady while gold plunges.
The five-day window set by Donald Trump for Iran expires Saturday, but Gulf involvement changes the risk landscape. A regional coalition fighting Iran would put oil infrastructure across the Gulf at heightened risk and could further destabilize markets.
For now, bitcoin remains above $70,000 even as other assets deteriorate, leaving traders to watch whether the crypto’s resilience holds or simply awaits the next headline-driven move.
About The Author
More Stories
Bitcoin holds steady around the 2023 cost basis, echoing patterns seen in past cycles.
Bitcoin climbs to $71K, driving a crypto recovery amid $550 million in short liquidations.
Bitcoin holds firm above $70K as direction depends on murky Iran-U.S. negotiations.